There's a big difference between the gaming vs mobile world when Microsoft took both on. In 2001, the gaming world didn't have one dominating world beater that looked impossible to take down. Whereas in 2011, Apple is so ultra-dominant that they will never be taken down in our lifetimes. Microsoft took advantage of substandard gaming to create the gold standard by 2011, kudos to them on that. Even Steve Jobs would give a pat on the back for that.
Actually, if you are not rewriting history, there was one dominating "world beater" in the gaming world: The PC. The Playstation was considered the "niche device" for those that wanted gaming only, and the PC was the absoulute KING of gaming. There wasn't one game that didn't come out for the PC. It was the top gun. Now, is that the same as the iPhone? Nah. It was a different beast. But the point is Microsoft saw WHY the PC was top dawg: It had the ability to allow players to compete online with each other. That was the niche they took: Online gaming. They built the entire system around that and great graphics. They built their brand.
Smartphone adoption is actually growing faster than the gaming world did. Every year, more and more consumers drop feature phones and move to Smartphones. The last statistic I heard was that next year might be the first year global Smartphone sales may outpace Basic phone sales. That is close to a near certainty in developed countries. Translation? Less than 50% of the cell phone owners right now are smart phone owners. Millions of people will move. Are they ALL iPhone users in your world? Is every person truly happy with Android? How about if Apple just keeps recycling the same design and features over and over? You do not think a "Blackberry-ish" backlash might happen?
Windows ecosystem is growing. It has ever evolving document and buisness support. It is a part of the largest software in circulation. It is a part of the XBOX family, offers access to cloud storage, has grown to over 40,000 apps in over a year, added hundreds of features, dozens of manufacturers, dozens of new markets, and you think it is done? I got a nice, shiney dollar coin that says you are slightly mistaken.
Boy, I rambled. Sorry.....but I feel a lot better.