What's he supposed to say when his company just launched a new product that "we are going to discontinue it so don't buy it."
Here's one analyst's take:
CEO Satya Nadella makes it clear that he sees a "software-powered world," a "mobile and cloud-first world," and that doesn't sound like a world where Microsoft makes a gaming system - or one where it makes a lot of hardware at all. This isn't a surprise coming from Nadella, the former head of Microsoft's successful enterprise and cloud services division."
At the Surface release event he had this to say:
So that’s what leads us to today’s discussion. The question that needs to be asked and answered is: Why hardware? We clearly are not interested in building refrigerators or toasters. We are not building hardware for hardware’s sake. We want to build experiences that bring together all the capabilities of our company from our cloud infrastructure to our application services to our hardware capabilities to build these mobile-first productivity experiences. That’s the mission. We’re building new strength and capability around that alchemy of being able to bring hardware and software together. And the Nokia close really gives us that extra strength to be able to do that.
We’re not interested in competing with our OEMs when it comes to hardware. In fact, our goal is to create new categories and spark new demand for our entire ecosystem. That’s what inspires us and motivates us with what we’re doing in our devices and hardware.
He sees the Surface as something he is stuck with for the short term until OEMs see the value in a windows based tablet and start making more of them. It is likely, given his disposition, that if the Surface is to survive, it will be spun off to another company.