Both things can be true. Fortunes do rise and fall. Microsoft used to be the 800 pound Gorilla and now they're not.
Personally, I hope they waste a huge amount of money on this push and fail miserably.
I also hope they lose their anti-trust case and get forced to play fair because you certainly cannot hope to make any money in the smartphone app market while ignoring Apple/iOS. They do have a monopoly on paying customers as someone else in this thread pointed out.