The only thing that MS has going on, barely, is the X-Box 360. The rest is just making copycats on similar products.
If we talk about "making technology", I don't remember anything in the last decade made by MS being something actually "new" to the consumers. Not in bling bling, not in functionality.
Even in OS (business+desktop+mobile) share they're staggering quite fast. They can't even position their new OS'es quite well because they DO NOT BRING ANYTHING NEW to the table. Win7 has seen the light thanks to loads of cash in marketing and being better than Vista. But like 99% of the needs are pretty much covered by XP and the much "humble" (no gaming thanks to DirectX) Linux distros out there, where Ubuntu shines and excels in user experience (ease of use, features, UI, etc).
Hope MS takes this as a wake up call FAST. They're not a bad company, but they're not making anything amazing these days either.
Cheers!