So what part of Kan's statement is true? When Kan said: "It is not something you are good at," what does he mean by "it"?

Microsoft makes the best advanced-interface gaming appliance on the market. Microsoft makes the best large multitouch appliances on the market. And Microsoft has a killer track record in designing, making and selling hardware.

Sure, Microsoft is still making billions on software. From a business perspective, Microsoft is still a very successful software company.

But in the past 10 years, all of Microsoft's "hot" products -- the ones that lead categories, get rave reviews and engender loyal fans -- are hardware products.