Microsoft to remain focused on creating software more than hardware?

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Remember when Microsoft proclaimed itself a “devices and services” company? Back in October of last year, Microsoft CEO Steve Ballmer stated devices and services impact the way the company is run and how new experiences are developed.

But it seems that Microsoft may be focused on creating more software than hardware. According to a new report, Microsoft is looking for 1,620 software engineers and 199 hardware engineers. Most of the hardware jobs deal with the Xbox and Surface tablet.

“I said that over time, the full value of our software will be seen and felt in how people use devices and services at work and in their personal lives. 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. The work we have accomplished in the past year and the roadmap in front of us brings this to life,” Ballmer originally stated back in October of 2012.

It seemed that everyone automatically thought that since Microsoft was going to be more of a devices and services company, we would see Microsoft design and build it’s very own smartphone, or even acquire Nokia. After all, Microsoft did create its own tablet device (Surface RT and Surface Pro), and results were “less than impressive.” But according to this report, Microsoft has very little to no interest of designing a smartphone (at least at this time).

Therefore, Microsoft falls back to being more of a software company. Do you agree with this report or do you think Microsoft is merely beginning to get its feet wet in the devices market?