Should Microsoft give up?
zdnet.com
zdnet.com
A third serious contender would increase the level of competition considerably.
With the erosion of the relevance of desktop platforms, Microsoft's Windows will become a shadow of its past. Without Windows, Office will soon follow it, pushing their server offerings in the same direction. This is really a bet-the-company situation.
Microsoft should give up the browser wars so we web developers can develop for 1-2 browsers.
Microsoft should NOT give up the search engine wars because I am so screwed if Google bans my Adwords account or penalizes me =(
I doubt they would succeed. I'm not sure whether the carefully cultivated to be anti-Unix Microsoft development mindset would survive the allergic reaction this would cause.
IMHO "metro style" isn't a differentiator.
Even if that >50% isn't true (though I believe it is), it helps to put things in perspective - what's Microsoft's larger goal, other than just get a bit of market share in another corner of the larger tech market?
Google and Apple both have visions behind Android and iOS, respectively, even if they're very different visions/goals. I still don't know what Microsoft's driving vision behind WP7 is - that is, if they have one.
Survive. Microsoft (at least parts of it) realize the PC desktop is not going to last forever and that's the only market they really dominate. Everything else depends on this domination and the moment it ceases to exist, all the other BUs will fail. Except, maybe, Xbox and miscellaneous hardware.
Office
If MSFT's future revenue looks like the licensing fees they're getting from HTC, they're in very deep poo poo.