Lately they entered the Media Market and upped the gear with the Xbox 360.
So Gadgets? Are MS shy of this? NO!
All of us love a cool gadget, something that either achieves nothing but makes us happy OR it actually serves a useful purpose (either way i am happy )
One thought Microsoft have had (SERIOUSLY)... Is a Whereabouts Clock!
It shows you where people are, and its inventor Abigail Sellen thinks its best use is in the home.
She said: "We noticed in our studies of family life that it was important to know - when you come home from work for example - are my kids still at school, have they left school yet, has my husband left work yet, shall I get the dinner on? This kind of thing. Actually knowing where your family is very important to family life."
This is more a new concept than a new technology, and the real version may still be a year or two away.
It would track the mobile phone signals of loved ones, then cross-reference which mobile cell they were in with pre-programmed locations, like the home, school, or workplace.
Ms Sellen added: "This is not very specific at all about where people are, and that's deliberate. We don't want to invade people's privacy too much, so we deliberately keep things very coarse grained.
"If I'm at home I might want to know if my kids have left school, but I don't necessarily want to know exactly where they are."
Though targeted at home users, this technology could be very tempting to some bosses wanting track the whereabouts of their staff.
Or what about this!
Microsoft researcher Alex Taylor explained: "What we hope to be able to do is take still images and video and be able to see them in a bowl and possibly also listen to music.
"We also hope to be able to drag the images around the bowl, making use of the physical properties of the bowl to be able to display things in certain places, and possibly let them sit at the bottom of the bowl for storage."
Microsoft's Cambridge research labs reckon that such objects could be covered in touch-sensitive "skins" next year.