Nadella steering Microsoft back towards software for economic reasons

Microsoft sold more physical devices than Apple did last year - due largely to its purchase of Nokia - and still managed to lose $700M last quarter. No wonder Nadella is steering Microsoft away from hardware and turning his back on Ballmer's mantra of "devices and services."

Microsoft's quarterly financials are out, and they paint a startlingly clear picture of why new CEO Satya Nadella is in such a hurry to scuttle away from the "devices and services" mantra rolled out by former honcho Steve Ballmer just last year: Microsoft's hardware efforts just aren't making much money. In fact, they're actually losing money hand over fist.