Over the years I had multiple Android devices. They always had the apps and features I needed.
Then I bought a Windows phone. And all of a sudden I didn't have some apps I needed. Also, I didn't want any games on my phone. What did I get? A "games center", which I could not uninstall. Thanks Microsoft. Are you assuming now that consumers use their devices for gaming? My current Android phone, on the other hand, has everything I need and some handy quick access buttons Microsoft didn't think of. Even a Windows fanboy and Microsoft admin I know admits that he likes his newly bought Android phone.
I recently noticed a family friend who I had always assumed to be a Microsoft guy and dev, switch to Mac because "it doesn't suck". On servers he uses Linux. Yup, no more M$. Everything Microsoft does either ends up sucking for the consumer (having to fork over $$$) and/or sucking for the developer (having to learn a new API for no real reason). There is a point where people snap and they just switch. All Microsoft has left is a desktop OS (which has a reputation for insecurity, instability and with the current iteration of privacy invasion) and an office package (for which competition is showing up).
If the desktop Linux distributions (yes, I'm talking to you Redhat, Conanical and SuSE) get their act together and start fixing the multimedia stack and Apple cuts the price of its Macs. Microsoft is in for some real trouble.
The only market on which Microsoft isn't facing competition is gaming, but that is changing with console games getting more inventive in regards of dealing with the limitations of the controls.
So, it has become a question of when, not if, will Microsoft close its doors.