Ask HN: Would Microsoft have been better targing the enterprise or gaming niche?

I was reading CNET's Q&A with Steve Ballmer today (http://bit.ly/dCu3Y9) and wondering about Michael's Porters 3 generic strateges of cost leadership, differentiation and niche. From Steve's comments and the Microsoft AD's (http://bit.ly/aa5Wqd) it seems like they are pursing a differentiation strategy based on convincing people that they should not use their phone....? Ok maybe that their phone should be simpler to use and take less of their busy time. Considering there are at 4 dominant players in the smart phone market (Apple, Google, Nokia and RIM) would they have been more profitable if they went for a Niche strategy targeting the Enterprise (e.g. Office app, sharepoint, AD, Exchange / Outook integration) or Gamers (mobile gaming is very fast growing, good synergy with XBOX). Is attempting to do both a recipe for low market share and more importantly low profitability for the phone?