There are about 16 ways this can turn into a disaster for Microsoft. Their entire business model the past few decades has been built upon software licensing. Now their model is hardware sales mixed with software licensing. With the purchase of Motorola, the big fear in the mobile industry is that Google will make this jump as well. With Microsoft now actually doing it, it’s a bajillion times worse. At least Android is free (sort of — coincidentally, most OEMs pay Microsoft to use it). Windows is not free. OEMs will be paying Microsoft to directly compete with — wait for it — Microsoft.
Cluster, meet fuck.