Microsoft is ready to sacrifice its Windows licensing cash cow to gain market share in Mobile and Tablet market and hence is licensing Windows for free for devices with screens under 9 inches. This is because of the low adoption of Windows devices in the touch-centric device market. Android is crushing competition with its free licensing model and Microsoft wants to emulate the success by copying the strategy, it is yet to be seen whether this strategy will work for MSFT which lacks apps for its Operating system. To tackle this problem, MS is introducing Universal apps capable of running on Windows 8.1 Modern, Windows Phone 8.1, Windows 7 and Xbox, write once, run everywhere.
In the leadership of Satya Nadella, atleast Microsoft is taking steps in right direction. I expect the competition to heat up in coming days, which is always a good thing for the end consumer.
Microsoft really wants us to love Windows again.