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I don't see them making smart watches in future - I mean with all this history of failure, why would people buy those if they made any?
In fact, I have been considering my next phone and it'll most likely be an Android phone. They haven't exactly been impressive with their phone releases either. Started off great but nothing new released in 2 years, App store is still poor, etc.
I loved what they were doing with the phones, back when they were serious about them - I ended up having 4 of them starting with a W7 phone. Ultimately I moved to Android because I was sick and tired of not having the apps available that I wanted. Unfortunately, Microsoft have had a strategy of masterful inactivity which leads me to believe that they just aren't interested - few announcements and a glacial development pace have resulted in a fairly massive loss of confidence. That, combined with a belief that the only thing MS is interested in is the Cloud, leads me to question their entire direction; or lack of one.
I started writing a blog post about developing for UWA but lost the will to live halfway through because everyone I asked has said they just aren't interested in developing UWA applications. When you have desktop apps that run happily on W10 as well as older versions of Windows, why would you waste your time developing an application that can only run on W10?