Microsoft still does not really understand the market segment the Android and iPad users belong to. Everywhere I look, most of them just use it to play games or watch videos. In the latest ads, MS insists their OS is better because it has "less talking, more working". The fact is, the market wants an inexpensive platform for entertainment, not to work. That's why the cheap Android devices are selling while the more expensive, MS Office capable tablets are not. People still need MS Office, just not needing it on a mobile device that much.
By focusing mobile solution on work, MS ends up having a much smaller slice of the total mobile market consists of professionals who do not mind paying more for more capable devices. But that market is much smaller compare to the general public.