iOS and Android have set a dangerous precedent where people are willing to give up tremendous amounts of their private data for a "Free" OS. Facebook, Twitter, etc... have propagated this environment online as well.
Microsoft, stuck in the days of having to get the customer to pay them for their product, was losing ground, finding it hard to compete. Their solution, as in all things, is to embrace and adapt. If Apple and Google can GIVE away their OS, so can Microsoft. Of course, Microsoft still has to make money, so they spy on us just like Apple and Google. People ignore this problem on their phones because they're so convenient, but I'm thinking that market segment of people willing to let Apple and Google spy on them is NOT same segment that buys and uses PCs anymore.
Microsoft's problem is they're trying to combine their Desktop environment with their failed mobile environment to compete. But they never accepted that their desktop and mobile environments are SEPARATE user bases. Apple's desktop market is minimal, and Google's is non-existent (chromebook? please). Apple has no intention of combining OSX and iOS (at least, that's their story today). Google just tried to move Chrome/Android to the desktop and failed. Microsoft screwed themselves over when they took the one product they had a dominant position on (Windows) and tried to turn it into a mobile OS that no one wanted.
I wouldn't be surprised if Windows eventually died, and Microsoft launched a new OS for desktop-oriented environments. They'll never recover their Windows glory, but they might at least stop driving away loyal customers in droves.