Microsoft Research is very strong, it's just that their work is broader than just new gadgets, though if you're interested in that then Kinect is an example of

Microsoft Research is very strong, it's just that their work is broader than just new gadgets, though if you're interested in that then Kinect is an example of a product refined at MSR, plus you have the upcoming HoloLens. For a broader understanding of what MSR does, check out their work on quantum computing ( http://research.microsoft.com/en-us/research-areas/quantum-computing.aspx http://research.microsoft.com/en-us/research-areas/quantum-c... ) and functional programming (Microsoft Research Cambridge and MSR-Inria are good places to look into for this). That's just the tip of the iceberg, Microsoft plows plenty of resources into R&D. The fact they invest in fundamental research isn't something to attack, it's something to celebrate, not all research needs to result in a tangible product.