Microsoft the company is fine but it's individual departments which are wrong. It's like 4 or 5 different companies trying to compete with 4 or 5 other companies.
The main OS department thinks it needs to compete with Apple and Google, yet it holds a monopoly and most companies prefer MS for it's ease of use/compatibility. They think they need to move into the new touch screen age even with their desktop OS but many would prefer just a better 7.
Their phone department is lacking, it's behind as it wasn't first, yet now with the purchase of Nokia, they could make ground up on iPhone's popularity and Android's user market.
Then their game market, it's done well to establish itself after Xbox's failure. Their network is good but it had to be good, you were paying for it. The issue here lies with the idea and arrogance at the announcement of the Xbone. DRM, having to log in, I know 360 had piracy issues but to treat all customers as pirates is not a good way to start things off. PR machine was a mess, mixed messages, failure to answer simple questions just lead to more confusion. They've done well to build back up from that bad start, trying to focus more on the games and mention Kinect and TV features less. All they need to do now is lose any kind of (non-XBL store related) adverts on their consoles (360 included).
While Nintendo are a games maker so make games, Sony make hardware and games. Yes Sony compete in hardware markets but they know their 'place' they are mid-high end.
Hmm, pie.
