Microsoft has been working to move into entertainment and content/content aggregation since at least 1998, and they have always shown the same pattern:

1) attempt to embrace and extend, usually a long-past-its-peak business (they tried to embrace and extend TV channels in 2013 ...)

2) they do this by "integrating" with another product. Anything they have. And making the successful product they have much worse. Zune. Windows. Xbox. Bing. Groove (I actually liked Groove, well the interface). Lumia/Nokia. That last one wasn't even a microsoft product. And now they're working hard at blowing up Windows and Office products.

3) fail, but don't bring the product back to the previous state, and keep trying, keep trying, keep beating the dead horse until they're standing in a hole in the ground in questionable liquids. And while nothing could ever hope to match the speed at which they destroyed Xbox, it's a constantly repeating pattern.

4) Get feedback from the top of Microsoft that Microsoft's valuation is based on this embrace and extend and constant growth and so, no matter how big the disaster, they'll just do it again.

5) goto 1

This, if you look carefully, despite that every Microsoft product that became a success was going into a massively growing, or an outright new market. But none of the markets Microsoft is currently in is growing, except maybe cloud. And I find the fact that they're reluctant with embracing and extending in cloud (e.g. a move like making windows server free) an incredibly bad sign for Microsoft.

Microsoft does not have the proper equipment to embrace and extend anymore, and I don't see much of a target market for them to move into. Microsoft's valuation is based on the idea that they're a monopolist that can "eat" other people's markets, but they haven't eaten someone else's market for a decade now. Admitting this, of course, would take at least half off their stock because at that point you'd have to admit they'd be doing pretty well to have a growth rate of maybe 5%.

>5) goto 1

This. Here is your main Microsoft engineering failure, using a Basic goto statement in their implementation of a marketing algorithm. Shame!