I agree with this wholeheartedly. MS doesn't want to sell the complete widget they simply want Windows to be dominate so they can get OEMs to suckle their teat. Unfortunately since Windows has no real smartphone, tablet or ARM-based presence they are not just losing out but the gravitational forces of those three categories have stagnated and will shrink the WinPC market if they don't think of a way to fill the void with Windows.

Perhaps not the best plan, just like when they screwed over their Play4Sure OEMs when they created the Zune, but it's a plan and it's either case MS is trying to make a move into the HW side long after the dominos have fallen. I quite like many aspects I saw with the Surface itself but there are so many questions and concerns about the way it was shown, what wasn't shown, the lack of hands on, the time frame to release, price questions, etc. that it's looking as dead as the Zune, which was a very solid device by version 2.0. Too little too late.

MS has around 30 years of learning to do before they can do the vertically-integrated "sell the whole widget" game without looking like amateurs. 

The problem is that MS doesn't think like Apple. The two companies are approaching tech, philosophically and strategically, from entirely different places. You can't just transplant Apple's CULTURE into Redmond and expect it to function successfully. 

Just look at the disastrous Surface keynote. It was just so . . . awkward and flat-footed. Sinofsky looked so uncomfortable that he was practically squirming. Again, these guys aren't accustomed to this sort of thing. Microsoft is broken at the tech-cultural level. They're no Apple, but they're trying desperately to be Apple, without having any grounding in the basics. 

Of course, it's a ploy to sell Windows 8.  What else is Microsoft in business for but to sell Windows?  Windows 8 by itself may not help Microsoft sell a lot of copies.  A Windows tablet ups the ante a bit and may boost interest in Window upgrades.  I only hope that as a Apple shareholder that the Surface tablets have a happy Zune ending.  I'm already tired of hearing how the Surface tablets are going to put a dent into iPad sales.  Seriously, not one Surface tablet has been sold yet, so it's far too early to tell what consumers think of it and if they'll shell out their hard-earned cash for it.  I say they won't, but maybe that's just wishful thinking on my part.

sounds like Shih forgot about the Xbox

If this is true, it will backfire on Microsoft. They are showing a prototype that isn't practical, will not be able to be reasonably priced due to economies of scale and is nothing more than a Halo device that other manufactures won't be able to duplicate at a reasonable price. 

It's not practical because it will likely have poor battery life, it can't be used as a laptop, just look at the side profile photo and try to imagine using that on your lap. If they aren't going to keep it in production, they will never build enough to bring the costs down and consumers will at first be excited by this announcement, only to be disappointed when it is finally released. Lastly, Microsoft does't need to yank another product off of the market soon after it is released. Those early adapters will be pretty upset and the bad press is going to hurt the Windows Tablet sales.

There is a good write-up on Apple 2.0 about why people think the effort is real. Bottom line: MS makes $78 operating profit per PC, Apple makes $178 per iPad. If PC growth stagnates, MS will see more pressure on their share. Taking profit from Apple won't work; the only rock they can squeeze is their OEM partners.

That said, I seriously doubt MS themselves know if it is a marketing ploy or a serious change in direction. I am sure it is both until one direction proves to be a failure. They have done a pretty good job promoting Windows 8 this week for sure, without really providing more than a concept for the Surface.

Looking at best return on investment, I would say that marginalizing the OEMs is more productive for MS, assuming they can sell themselves as a premium brand. They have to make a decision though, and it would seem like that decision needs to come fairly soon or they risk pushing critical players towards alternatives.

Quote:

Originally Posted by SolipsismX 

I agree with this wholeheartedly. MS doesn't want to sell the complete widget they simply want Windows to be dominate so they can get OEMs to suckle their teat. Unfortunately since Windows has no real smartphone, tablet or ARM-based presence they are not just losing out but the gravitational forces of those three categories have stagnated and will shrink the WinPC market if they don't think of a way to fill the void with Windows.
Perhaps not the best plan, just like when they screwed over their Play4Sure OEMs when they created the Zune, but it's a plan and it's either case MS is trying to make a move into the HW side long after the dominos have fallen. I quite like many aspects I saw with the Surface itself but there are so many questions and concerns about the way it was shown, what wasn't shown, the lack of hands on, the time frame to release, price questions, etc. that it's looking as dead as the Zune, which was a very solid device by version 2.0. Too little too late.

Wait a minute. Didn't Ballmer say that Microsoft now wants to take another stab at the vertical business model like Apple XBox? To better integrate, and create synergy between, HW & SW? What this guy Shih is saying completely contradicts that. So are these simply demonstrative models to show the 3rd party OEM's how it's done and then the plan is to later pass the baton to them? There's a lot of fuzz surrounding this whole thing, including the seemingly intentional omission (possibly due to cost) of cellular connectivity. Either Microsoft is completely desperate or they think they hold the key to the Holy Grail. I feel it's the former.

On another topic...I've been too busy to look for and watch the whole Surface unveiling thing but have the device freeze-ups during the NetFlix app segment been edited out from the posted video? I know Apple has had a few faux pas during keynotes also but do they edit them out before posting the video for public viewing? Apple's have never been that bad so I've never really looked for them while watching. One that comes to mind is lack of bandwidth due to attendees hogging the WIFI. Not exactly a device problem but a slightly embarrassing incident, one that Steve handled brilliantly, as I recall.

Quote:

Originally Posted by AppleInsider 

[...] The Windows RT model is set to go on sale in conjunction with the launch of Windows 8 this fall to be followed by its larger, and presumably more expensive, brother three months later. [...]

Let me take a wild guess at the Surface and Surface Pro pricing.

Surface: $399.  Because we're Microsoft dammit.  And Surface is just as good as iPad.  And it's magnesium!

Surface Pro: $699. Because we're Microsoft dammit.  And because none of those Ultrabook weenies can hit the $699 price point.