I had a similar insight when Google announced a tablet concept:
http://news.ycombinator.com/item?id=1094476Microsoft's business strategy has always been a kind of unfocused. They didn't ever sit down and say DOS or BASIC or Word was going to be the cornerstone of their business, they just did what they thought would be useful at the time until they managed to hit on something. You can tell because, though I can't say anything for their old BASIC's, DOS wasn't even very good! As Microsoft got big enough to parallelize this strategy, it turned into a kind of shotgun strategy where they simultaneously tried to build web browsers and gaming consoles and mobile phone operating systems and MP3 players and webmail and everything else. If you read The Road Ahead, Bill Gates writes about Wang, which was enormously successful but missed the PC wave just long enough to go out of business. After Microsoft's own close call with the internet (ironically around the time The Road Ahead was written and first published), I'm sure these fears intensified to the point where Microsoft started jumping after every hot new thing, be it multitouch, MP3 players, search engines, or whatnot.
The contrast to this is Apple in the respective Jobs eras, which focused intensely on building a few great products. It's a far riskier strategy--if Apple invents the Macintosh and no one wants one, what then?
Google's had a shotgun approach as well--I don't know why, but it seems like a good use of the talent they seem so intent on recruiting. Part of the shotgun approach is that some products are better than others, but a likely bad part of the approach is that you are prone to go chasing after every new trend.