Microsoft has been resting on its laurels for far too long, and in the recent years, have been brutally beaten to the punch by rvials Apple in the PC business. It also missed the train when it came to key emerging markets like the mobile and tablet markets.
It managed to save some grace with Windows 7, a well designed operating system that works as well as it looks. But its efforts with Windows Phone 7 isn't paying off as well as they had hoped, even though the software itself was quite decent.
With Windows 8, Microsoft hopes that it has the magic bullet it needs to become relevant again. According to an article by CNET, Ballmer acknowledged that the company has underperformed in many areas, but hopes to catch up with its Xbox business, new Mango updates and of course, Windows 8.
He feels that with their current strategy, tied heavily to Windows 8, Microsoft still has plenty of chances to grow as a company.