MS getting its own mobile hardware division is a good move, of a series of steps that try to establish the late comer Windows as a significant mobile OS. But MS still have to realize they have priced their products badly and this is the main reason why their app store cannot take off. Sell the device cheap, cover the basic features (email, browsing, social networking, video, music, phone), get a huge installed base and then wait for the developers to write the apps. Continue to force Office down everyone's throat and then justify their products should be priced premium is a sure way to lose to Apple and Google.