"We were too confident": Steve Ballmer says Microsoft's paranoia and overconfidence fumbled $400 billion in Windows Phone

Over the past few years, Microsoft co-founder Bill Gates has openly acknowledged that the company fumbled the smartphone war, which set back the tech giant a whopping $400 billion. "The greatest mistake of all time is the mismanagement I engaged in that caused Microsoft not to be what Android is," Gates added.

However, Android co-founder Rich Miner seemingly shared a different account about Microsoft's missed opportunity in the mobile computing landscape, suggesting that Bill Gates was at fault more than he was letting on.

According to Miner:

"I literally helped create Android to prevent Microsoft from controlling the phone the way they did the PC - stifling innovation. So it's always funny for me to hear Gates whine about losing mobile to Android."

And now, former Microsoft CEO Steve Ballmer has seemingly corroborated Miner's sentiments. In a recent interview on the Acquired podcast, the executive admitted that Microsoft was overly confident in Windows, preventing it from capitalizing on the mobile landscape.

The Steve Ballmer Interview - YouTube

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Ballmer further indicated that the software giant attempted to force Windows into "unsuitable" markets rather than developing platform-specific solutions tailored to meet the needs of these markets.

Ballmer pointed at Windows Mobile and automotive apps as classic examples where Microsoft attempted to tap into new markets with Windows APIs and a user interface rife with unnatural experiences.

Microsoft CEO Satya Nadella pulled the plug on Windows Phone, only to later admit that it was a strategic mistake. Ballmer further recalled that Microsoft's missed opportunity in the smartphone landscape emanated from "paranoia and confidence" in Windows.

The executive further revealed that the company viewed Windows as its "birthright," giving it a free pass to venture into new markets. As such, Microsoft struggled to compete with superior experiences and platforms when it decided to venture into media center apps and TV integration — its simplified versions of Windows didn't cut it.