I wonder if the Zune and Kin debacles were a matter of timing. Microsoft saw that they were late to the game, and surmised that the smart phone (and living room console) was the correct path. Based on some of the charts I’ve seen, even iPod numbers have fallen since mid-2008.
It may be inevitable that corporations with diverse product lineups have to abandon specific branches. Clearly, though, the cost of abandonment extends beyond the capital investment. The integrity of the corporation suffers a loss.
If we consider the devices mentioned above, and the abandoned toolsets on the development end (SilverLight, XNA, etc.), Microsoft’s integrity needs intensive care. A monumental commitment has to be applied to this particular branch. A course correction may be tolerable, abandonment could be critical.