iPhone comes out for the first time, and MSFT stays with WinMo6. MSFT realizes that their software doesn't have what people want, so they start working on 6.5.
iPhone3G comes out, and Android is released... MSFT releases WinMo6.5, and don't even cause a ripple.
In the meantime, MSFT releases Kin.. they almost sold 9000 units. a whopping 9k, that's not even a ripple, that's an electron in the pond. Palm was able to sell more Pixis, and that phone was/is garbage.
iPhone4 comes out, Android is on version 2.2, MSFT still working on WinMo7. Anything that Windows Mobile can tout, is already done by iOS4 or Android2.2. So why would MSFT even bother?
Chrome (the browser) is released, and it touts speed and simplicity. What is Microsoft's response? IE8, with more plug-ins, and more bloat. It's slow to load, slow to browse, and has all sorts of bells and whistles that no-one cares about. Way to go Ballmer. How much of the shareholders' money did you spend developing that winner?
The iPad is released... people forgot that Windows ever released tablet software. Why? Because previously released tablet PCs were uncomfortably bulky. So now that Apple is selling 3 million iPads and counting, a MSFT competitor won't be out until the iPad maybe reaches the 8 million mark. Are you kidding me Microsoft? You're not even coming to the party late, you're waiting until the punch bowl is empty, the garbage cans are overflowing, and the partygoers are passed out in their own vomit; then here you come in your best tux ringing the doorbell telling everyone within earshot how much you're ready to knock their socks off. The sad thing is that the only people who are listening, are by now shaking their heads at you because they know the only person you're fooling is yourself.
Try to figure out what you want to be, then go in that direction. Gone are the days when you can just slap Microsoft on some application and distribute it to every hardware manufacturer with a conveyor belt. You're competing with free (Google), so either be inventive, or just stick to Office and Windows.