Your business has absolutely nothing to do with what you want to sell... it has absolutely everything to do with what your customers want to buy.
"But we can shift that paradigm! This time, we'll plan better, we just need to educate our consumers."
Well, at least they taught their consumers a valuable lesson: Sony, famously guilty for shitting on the rights of virtually everyone through their crappy DRM-enabled hardware, still sold way more consoles than Microsoft.
Microsoft just has never excelled at building what customers want.
Nokia and everyone else had phones with Java, so Microsoft shipped WinCE phones - that didn't sell.
Apple came out with their DRM-encumbered iPod, so Microsoft followed it up with the DRM encumbered Zune - that didn't sell.
Apple came out with the iPhone with the walled app garden; so Microsoft shipped Windows Phones with a walled garden - that didn't sell.
Steam and Sony and Nintendo came out with DRM encumbered games; so Microsoft shipped the XBox One - that sold quite a few, but sucked.
Their two biggest problems are that they want to use services as license enforcement gateways, and that their stiffest competition to their Software V3.0 is their own Software V2.0. Nothing new in Office has been worth buying upgrades since about 2007, yet they have managed to convince some people to upgrade to Office 2010, 2013, and now Office365.
And people are getting more and more fed up with the constant greed. LibreOffice has caught up to about Office 2007 in terms of maturity, which is good enough for a lot of people and companies. Linux has caught fire in the corporate world, overthrowing WIndows Servers by the millions. Cloud computing is moving companies to outsource their hardware data centers. Azure is competent in this arena, but cloud computing is already close to a commodity - there's not a lot of value Microsoft can add over the other big players.
It's weird, but at the core it's an existential crisis for one of the world's largest companies. They are desperately trying to figure out something to sell that will still be in demand 10 years from now.