>Microsoft can abandon anything that's not core to their survival, and right now that's Windows
First, Microsoft has three major divisions bringing in somewhat equal amounts of revenue, Windows, Office and Server & Tools.
Second, if you apply the same metric to other companies, it would be foolish to use OS X, Gmail, Docs. App Engine. Android, and perhaps even Azure.
Third, Microsoft could've competed by making a better Zune, perhaps, but it's not the same thing as the iPad killing Silverlight, because that was done by not supporting plugins. Tablets are slowly overtaking PCs in sales, what sense does it make to push new versions of a plugin that will never run on most of them?
The transitions have mostly been smooth, VB apps still run on Windows. Hell, a game bundled with the Windows 95 CD still runs unchanged on a Windows 8 machine.
ftp://ftp.microsoft.com/deskapps/games/public/AAS/Hover.exe
http://www.johnlamansky.com/blog/the-legend-of-microsoft-hov...