Is Microsoft going to withdraw from Software sector? Yes, what you read is correct. Sources (allthingsd.com) explains that Microsoft CEO, Steven A. Ballmer wrote "This is a significant shift, both in what we do and how we see ourselves — as a devices and services company. It impacts how we run the company, how we develop new experiences, and how we take products to market for both consumers and businesses" in his letter to Shareholders. Also, the increasing competition from Ubuntu and upcoming Android for PC and iOSX might have made them shift their way. Anyhow let's wait till the official announcement.