In a recent statement to Microsoft employees recently, Ballmer said that they had a few more Surface RT tablets kicking around than they could sell - as sales of these devices were incredibly flat. Later he admitted that they aren't selling as many Windows devices as they want to either. This is not great news for a tech company when all of your products are in a state of decline. In all honesty, I think that this has something to do with recent hardware being so decent. You don't have to upgrade to a new computer every year anymore. This will definitely keep the new hardware sales down a bit. When you throw in peoples desire for ultra mobile (think phone and tablet) usage, of course Windows sales are weak.
Although Microsoft CEO Steve Ballmer has always exuded unwavering confidence in public interviews, behind closed doors he's apparently being much more candid. The Verge reports that Microsoft held an in-house town hall event this week where Ballmer admitted to Microsoft employees that the company "built a few more” Surface RT tablets “than we could sell."