Microsoft Research is very strong, it's just that their work is broader than just new gadgets, though if you're interested in that then Kinect is an example of a product refined at MSR, plus you have the upcoming HoloLens.

For a broader understanding of what MSR does, check out their work on quantum computing ( http://research.microsoft.com/en-us/research-areas/quantum-c... ) and functional programming (Microsoft Research Cambridge and MSR-Inria are good places to look into for this). That's just the tip of the iceberg, Microsoft plows plenty of resources into R&D. The fact they invest in fundamental research isn't something to attack, it's something to celebrate, not all research needs to result in a tangible product.