Designing and building hardware is easy. That is, easy relative to SELLING hardware. Retail, hardware supply chain management, inventory management, support, etcâ€¦ are huge endeavors that Microsoft has very little capability for. If you have not actually tried to build and sell a hardware product you cannot really understand just how challenging it is. The DNA of Microsoft is that of a software company. Zune proved this. The ZuneHD was (and is) a fantastic piece of integrated hardware & software. But Microsoftâ€™s execution in selling it was bush league.