When I think of Microsoft, I think of "Windows", "Office" and "Enterprise". They essentially have a corporate image and beside a small group of people, the general public is not passionate about Microsoft. Satya Nadellla was right to focus the company on productivity.

So, in my opinion, they dropped the ball on those products because the market did not respond to them for the reasons I mentioned (perception). Xbox is the only exception because MS pumped billions into the division and attracted enough devs to make the product interesting to a significant number of people.