Microsoft is consistently in denial when it comes to new technologies.
circa 2000 - "Google is just a house of cards" (we don't need a pagerank algorithm)
circa 2006 - "smart phones are too expensive and the world will need years to catch up"
circa 2008 - "netbooks are just too cheesy, no one will buy that"
circa 2010 - "tablets should cost > $1000 and run an overwhelmingly burdening OS, why bother having them tethered to CDMA and GSM"
Microsoft always has the millionaire's solution. The problem is that their computer device buying market are not millionaires.
Their overwhelmingly un-cost effective solutions ultimately fail 100% of the time in the marketplace, then they simply copy whatever worked which is almost always a lighter more cost effective solution to the same exact problem.
Instead of being forced to create cost effective solutions to problems, after 2-3 years of being beaten over the head with them, they should START OUT with cost effective products and think of getting AHEAD of competitors.
It's like the executives at MSFT think it's a business deal and they can start out with a high offer and negotiate it down in the marketplace. People don't play that sh1t anymore. They need to get in their time capsule and jet out of 1985 and into 2011.
- oh wait, I forgot, MS R&D can project video directly into people's retinas like the Borg. I can't wait until hordes of people develop vision problems from that. That will be the end of Microsoft.