* Microsoft’s own platform, Windows Phone 7, has a tiny 1.6% market share (and decreasing).
* Microsoft makes more from Android licensing payments ($444 million in FY2012 from Android OEMs) than from Windows Phone 7 itself – by around a factor of five.
* Ballmer has been under increasing pressure to add value to Microsoft or resign, after inheriting the role and providing stagnant performance throughout his reign.
The way I see it, Microsoft survives nearly entirely on it’s dominant desktop and enterprise software. The future is mobile devices and search/social, in which Microsoft has a murky presence at best. They are spending (and losing) huge amounts on these areas with little to show for it – some drastic change is required.