This seems like a fair assessment:
Microsoft has some smart executives who can quickly and correctly assess market changes and opportunities. Often, they come up with a good strategy to capitalize on those changes. But somewhere between strategy and execution, the thread is lost. Windows Media and Zune are most relevant to this blog, but you can see it elsewhere: online advertising, search, and mobile phones, to name three obvious examples.
via Microsoft on iTunes in 2003: ‘We were smoked’ | Digital Noise: Music and Tech – CNET News.