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Investors are really shortsighted if they want Microsoft to focus only on computer software, essentially transforming Microsoft into a pure software company.  Market growth is going to be concentrated in the mobile market and Microsoft would be crazy to abandon its efforts there.  Microsoft is the best positioned tech company to leverage their existing products and services to provide customers with a seamless experience across all devices.  This means people can interact with their data anywhere they go, be it on their phone, on xbox live, or on their computer; Microsoft could be the first to fulfill the dream of "the cloud" where people no longer worry about their data because it is always with them.  To realize this dream both hardware and software need to be designed with this in mind.  Sure Microsoft could drop their hardware division and focus on the software necessary to pull this off, but what happens when the hardware makers (Sony, Nintendo, Apple, Google?) don't play nice and close off their devices from working with Microsoft products.  This doesn't even have to be an overt decision by the hardware makers to insulate their products from Microsoft; rather, just the fact that it is developed out of house may preclude the devices from working together.  The next generation of devices are going to need a common software base or rigorous communication standards in order to deeply integrate with each other.  This would almost certainly necessitate all devices being manufactured by one company.  Microsoft is the single best positioned company at this time to provide a common software base across a wide range of consumer devices in order to the cloud to reality.  Hacking their hardware division would serve no other propose than to delay the inevitability of the cloud and to ensure that somebody else (Sony, Apple, Google) steps up to replace them.