In a recent interview, outgoing Microsoft CEO, Steve Ballmer, said that the Surface is a tougher bet when compared to the Xbox. This is true since the first generation of Surface devices didn't take off as well as Microsoft would have hoped. However, there is a chance things might end up differently for the second generation of Surface devices.
Despite several people in the industry calling for Microsoft to split its hardware business from the main company, Ballmer doesn't see this as a solution to Microsoft's problems.
"One of the things tech companies really do terribly is build new capability," Ballmer told ZDNET's Mary Jo Foley during a recent sit-down in Building 34. "Unfortunately, when the industry changes, if you haven't built any new capability, you can become less relevant because the thing you were good at becomes less relevant and you didn't built capability in a new area."
Microsoft is clearly not interested in stepping away from the hardware business as the company has recently acquired Nokia's hardware business along with its 30,000 employees. Such a move means the company is strongly invested in hardware, and can only push forward to make sure failure does not happen.
According to Ballmer, when it comes down to the Surface, Microsoft did not set out to build a traditional laptop or desktop because OEMs were already doing a great job in those departments.
"On the other hand, there was an area of vulnerability," Ballmer said. "The vulnerability we have is not just on phones, where we're buying Nokia, but it's on tablets. And our OEMs do great work, but there are places their brands and investments don't travel. And so we wanted to supplement the work of our OEMs, hopefully make our OEMs stronger through the process, by making our overall competition with Apple"
Microsoft is in a position right now that could either break the company in the future, or make it more successful than it already is. The consumer market is not an easy target for a company that is primarily dedicated to the world of business, but with time Microsoft could come out as a winner.
