Ballmer talks Microsoft’s investments in hardware

Dec 5, 2016 08:09 GMT  ·  By

Former Microsoft CEO Steve Ballmer says the Redmond-based software giant had no other option than to invest in hardware, and judging from where the company is right now, this was clearly a smart decision.

In an interview with Fox, Ballmer explains that hardware will be an essential business for Microsoft in the future, and explains that he is very pleased with the success the company experienced with the Surface series.

“It’s one of the things I am really proud about was getting the muscle really working so that the company could do hardware. Because I do think it’s an important part of the future. I love the way the Surface has now emerged,” he said.

The Surface adventure

The first Surface model, called Surface RT, was launched when Steve Ballmer was still CEO of the company, but this version eventually failed and forced Microsoft to agree with a $900 million write-down because of unsold units.

The firm, however, continued investments in the Surface lineup and launched new models in 2013, one of which was powered by the full version of Windows 8.1. Microsoft eventually abandoned RT-powered versions and started focusing exclusively on Surface devices capable of running full Windows.

At this point, Microsoft’s Surface lineup comprises not only 2-in-1 devices but also a laptop (the Surface Book) and an all-in-one PC called Surface Studio. There are also several accessories available, such as the Surface Pen, the Surface Dial, and Surface mice and keyboards.

“The thing that I was pretty clear about when I was working there was we [the company] absolutely had to be in the hardware business and as you noted, we’ve been in Xbox for a while but it wasn’t really a general purpose capability. So, Surface and then phones, it sounds like they are taking a different kind of cut at it just from what I read from the press,” Ballmer continued.

Although the Surface series eventually succeeded, not all Microsoft’s hardware efforts are going well. The company still struggles in phones, and rumor has it that it’s now planning to abandon the Lumia lineup entirely, with the focus to be switched to just one model that could launch next year as Surface Phone.