Windows 8 was an impressive attempt to merge mobile and desktop OSes so that mobile users are no longer second-class citizens and have access to everything desktop users do. The problem? Mobile needed fixing, not desktop. In the push for engineering parsimony, they made the desktop experience worse simply so that it could be shared with mobile.
Kinect is a wicked piece of tech. It's just seriously, seriously cool. But what does it do? How does Kinect make gaming better? Outside of that one boxing game, I just don't see it. It makes everything demonstrably worse, like QTEs that work as cinematic finishing moves for bosses in God of War, but are completely pointless in 95% of the games they're included in. Kinect has the same problem: it's a really cool solution in search of a problem.
Perhaps the best example of this is Clippy, where MS used Bayesian algos to analyze text and offer suggestions. Again, a really cool little bit of datamining/ML, in 1997, no less, and running on the computational equivalent of a potato. Clippy is a really cool program. But it was completely pointless. It solved a problem no one had in a way that pissed off everyone.
And really, that's Microsoft in a nutshell.