My question is how would this affect the market?

Apple will stay Apple. I don't think they'll go anywhere.

The question is Google. If this happened in 2008, I don't think Android would have taken off anywhere close to the way it did.

But now? One one hand, Android has millions of apps already on the market. On the other hand, Microsoft now has potentially millions of old, existing, applications.

I don't think it will make a dent in the phone market. It's too commonly used as a hand-held rather than a station, and windows apps are useless there.

On the other hand, it can tank the Android tablet market