As a result, PC players like HP (NYSE: HPQ) and Dell have seen their stock prices diving to new lows; other constituents of the WinIntel ecosystem have also seen their stock prices fall, it's truly scary situation for the entire PC industry. Tablet sales are cannibalizing the sales of desktops and laptops, eating at the very core of the company's OS business, and it's getting worse. Microsoft has finally realized that it cannot afford to be complacent anymore, and they going to strike back with everything they got; Microsoft is making a strong, belated entry into the tablet space.
They do recognize the market, its potential and size. Instead of waiting for its hardware partners to introduce tablets based on Windows 8 platform, they decided to join the tablet war.
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