It could also be that all of their products are failures that no one wants. See the Vista Failure Log, Zune (if you can find one), Xbox, Office 2007, OOXML, Silverlight and a host of other things that no one wanted and don't make money. Vista and Office 2007 should be their bread and butter but both are so buggy, customer hostile and such radical departures that adoption is lower than any previous M$ "upgrade". If they could not build a decent OS in six years with all the people they had on board, they won't be able to do better with less. This is a death spiral they can't recover from.