...but they also have a poor track record when it comes to hardware (xbox is the exception).
I'd claim the opposite. MS has always made decent hardware, but they always treat everything they make as an easily forgotten side project.
From what I've heard, the Zune was an excellent media player from top to bottom, actually beating out on quite a few fronts. Thing is, MS marketed it badly, only sold it in a relatively limited market, and dropped support for it way too quickly.
Imagine how big of a success the Zune would've been if they advertised the fact it offered unlimited streaming over the internet. It could do just about everything we love Spotify for now. But did they ever mention that? Oh no.
...they aired those weird animal commercials instead.
The Surface RT is almost in the exact same boat. It's a solid piece of hardware through and through. One of the few tablets out there that matches the iPad on both style and build quality. But the software lets it down. If you're mainly concerned about apps, there isn't a single thing out for it that makes it a more compelling purchase over an iOS or Android tablet. On top of that, MS released the WORST versions of their metro apps for the thing. Metro Mail doesn't compare to the Outlook web abb. Skydrive Metro is limited and clunky compared to the super sleek desktop and web versions. It kinda makes you wonder what the hell they were thinking.
MS needed to come out the gate screaming. Instead, they futzed around, didn't concentrate their talent around it, added the desktop to a touch environment just so they could get Office on there instead of converting Office to touch, and...yeah. They sorta puttered out the door instead.
The whole RT situation proves one thing to me. MS has a ton of talent and good ideas, but lack the leadership necessary to get that talent rolling.