If even half of this is true, my theory that MS reached apex at the departure of Gates remains sound.
Market competition is good. Political competition generally is not. Android vs iOS is good. Kin vs WinMobile7 is not.
Naturally, MS makes enough from Windows and Office that they can continue to lose hundreds of millions on things they don't and probably won't ever understand like gaming, the web and mobile. Windows and Office are so entrenched that even epic disfunction on the part of their parent company can't dislodge them overnight.
Still, this is the world of Google, Apple and Amazon. MS and Yahoo just think they live in it.