I am sorry, when was the last time they did? Their core competency is partnering to extend their reach (OS licensing, PlayForSure, Windows Mobile, Windows OEM ..). They haven’t had innovation as a focus and never will. All this angst about lost innovation is bull – they never had it to begin with.
But the much more important question is why Microsoft, America’s most famous and prosperous technology company, no longer brings us the future, whether it’s tablet computers like the iPad, e-books like Amazon’s Kindle, smartphones like the BlackBerry and iPhone, search engines like Google, digital music systems like iPod and iTunes or popular Web services like Facebook and Twitter.
The primary reason Microsoft is lost is this is a new world where companies are eschewing the technology middlemen and selling their products directly. Microsoft cannot partner with anyone to deliver their products to consumers (except, of course, their traditional monopolies). Besides, their never having that direct consumer touch has clearly crippled their understanding of consumers needs and preferences (hence, Vista and XP – let’s remember XP SP2 was rushed to solve a whole slew of security issues).
That’s not so to say they aren’t trying to leverage their core competency (partnering: tying search to Verizon phones or partnering with Yahoo etc.) but they the fast pace and churn of direct delivery is killing them.
Microsoft has become a clumsy, uncompetitive innovator. Its products are lampooned, often unfairly but sometimes with good reason. Its image has never recovered from the antitrust prosecution of the 1990s. Its marketing has been inept for years; remember the 2008 ad in which Bill Gates was somehow persuaded to literally wiggle his behind at the camera?
Not so. Nobody gives a shit about the anti-trust case. Microsoft lost credibility by constantly imitating competition instead of leading the market when they had huge lead – Apple releases a graphical OS, Microsoft releases a graphical OS. Apple does a personal handheld, Microsoft build a personal agent, AOL had dialup software, Microsoft came up with MSN, Google bought Blogger, Microsoft did Space, Google bought YouTube, Microsoft bought SoapBox, Adobe had success with Flash, Microsoft had to do SilverLight, Apple did iPhone, Microsoft did Surface.
You cannot be a reactive company and catapult into being an innovative company.