Microsoft better have a dedicated VR-centered mobile skunkworks going, or they're just going to repeat this entire "Two Windows' In One!" fiasco all over again. Except now it's going to be three Windows'.
You know Apple does. They're going to come out swinging hard with dedicated VR hardware, a dedicated VR OS and I suspect dedicated VR silicon too. With some kind of VR Facetime, VR iMovie, and partnerships with some major iOS app makers. Samsung is already shipping. Microsoft is already struggling not to slip into 4th place, in terms of profit. And Valve is, for the first time, in a position to offer a complete Microsoft-free platform of their own. While Microsoft is trying to compete with Apple at their new game, Valve is gunning hard to out-Microsoft Microsoft at their old game (an open PC platform).
How can you see the writing on the wall when you're busing laughing at the competition with your eyes closed. I recall that he even laughed at Android.
Steve Ballmer was stuck in his dinosaur thinking and couldn't see the writing on the wall. The break away from the Windows monopoly is one smart thing Nadella did, and hopefully it frees up all these talented developers from creating better products.