> The money isnt in the hardware. Like I said "and (possibly) hardware" and for good reason.
Their surface netbook is their first venture into hardware (or one of their first ventures anyway for ages) that holds their OS which isn't just badged by them. The Microsoft Surface is not being sold at a loss.
Why then does MS supply hardware when OEM's and third parties have produced this sort of hardware in the past and MS has just supplied the software? Only these possibilities I think
a) They want to see if they can own it all, hardware and software like apple.
b) They want to diversify into hardware so they may have something to fall back on/expand their horizons
c) They want to set a good example for OEM's to follow. i.e. set the bar...
d) This is their insurance plan in case OEM's may abandon them in the years to come.
I suspect it's all of these reasons