While all this is true, it is also true that this trajectory looks a lot like IBM's after their heyday. It might just be a somewhat more gradual slide down to irrelevance.
For example, I couldn't actually figure out if Tay.AI was an example of supreme idiocy or supreme hubris. Their repeated botching of Windows 10 auto-updates is not getting much attention because the profits have moved towards the cloud, but that it all the more telling considering that MS had quite a monopoly on the personal computing device market not long back.
Remember, it wasn't like they were caught by surprise at some of these innovations - they did start something called Windows Live Search way back when, they did have some of the world's first smartphones (except they were put together in a way that no one wanted to use), they also had the advantage of large piles of cash to use to acquire, say, a YouTube. After they finally ran out of options, they decide to jump on the open source bandwagon because otherwise there was a very realistic chance that they would have actually gone into a serious downward spiral, particularly in the currency that matters most for tech companies - the mindshare of software developers who actually wish to push the bleeding edge farther.
It might seem ironic that, given the majority of Ballmer's tenure was spent not just bad mouthing open source, but actively harassing the open source community [1], that the first thing that Ballmer's exit brought was a sudden embrace of open source. In reality though, their chameleon like stance towards open source - embracing it when it suits them while kicking it when it doesn't - was effectively the only possibility for MS to regain its reputation. After all, it is not as if they innovated their way out of that hole. The general contempt directed at MSFT is well earned by this point, and while they are supposedly trying very hard to make amends, one also wonders if the world might already have good Linux desktops by this time if not for Microsoft's active nuisance-making for most of the previous decade. Yes, the companies are merely trying to maximize shareholder profits, but there are lots of times when MS did things which were just cringe-worthy. See this gem from Bill Gates [2]:
"In the same leaked Microsoft internal 'Challenges and Strategy' memo, Gates outlined a solution to the problem: "patenting as much as we can. A future start-up with no patents of its own will be forced to pay whatever price the giants choose to impose. That price might be high: Established companies have an interest in excluding future competitors." By 2004 Microsoft was accumulating 3000 patents a year."
And not to mention, the companies which ate away at Microsoft's profits actually came up with genuinely innovative stuff - even today, Bing is no match for Google's search - despite the fact that MS once used to pay people to use Bing (Bing Rewards)? What is MS doing which is similarly innovative? At least with regards to this article, yes, Microsoft is just another software company today which is making a set of the most expedient choices towards profitability.
[1] http://economictimes.indiatimes.com/microsofts-ballmer-warns...
[2] http://www.itpro.co.uk/101743/the-open-source-patent-war