Microsoft faces multiple issues, and I am fairly sure they are aware of them:
* Microsoft is not liked around the industry. They are respected, by what they have done (and their revenues), but aren't liked. Outside of people who have attached their wagon to Microsoft to make a living, others don't like them and have little interest in helping them be successful. Google is likely going to be getting into this spot soon, but now they are considered to "Not do evil" and people will work with them, and like them to some degree. With Microsoft, the fear is also they would take over the world, so people want to block that.
* Microsoft is a software company that made its living off the Wintel platform. They have tried to branch out, with mediocre success. The 360 is likely their greatest success outside of Windows, and it has had issues.
* The world changes, particularly in the area of technology. Microsoft has been caught flat by these changes, and has used its PC platform as a means of bullying its way into different areas. It has done this, being aware of how technology changes. We are facing a place where you need to be competent at producing computing devices that change the game, or partnering with the creating of devices to do things. Microsoft has issues of getting large and locked into a platform for computing that is becoming less and less relevant (the Personal Computer).