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Microsoft’s attempt at tablet has been a huge failure, and it seems that the software giant has now realised that fact too. Sources at Digitimes say that Microsoft is planning to cancel the product lines for Surface tablets, due to lesser than expected shipment rate.

Microsoft is rumoured to be bearing losses to the tune of a staggering $1.7 Billion due to extremely low shipment rates of the first and second generation surface tablets. The company is also unable to find distribution centers for the same.

Major hit to Microsoft’s surface series, is seen to be coming from the overall decline in tablet shipments due to the vast range of large screen smartphones available. Moreover, Microsoft’s Surface tablets have never really been a competition to some of the better alternatives offered by other major brands.

Sources have also indicated that sales of the Surface Pro 3 are unlikely to surpass one million units. Moreover, Microsoft itself doesn’t seem to aggressive in promoting its 3rd generation surface tablets, as the demand for the previous two generations has been way below the expected levels.

Microsoft has been unable to provide any competition, whatsoever, in the hardware business. The company’s Zune and Zune Marketplace, both failed to achieve results. Also, sales of Windows Phone devices has weakened, and Microsoft’s high-profile acquisition of Nokia’s devices business also did not yield any results.

Sales of X-Box One has also been disappointing as Sony’s Playstation 4 has scored way above Microsoft’s gaming console, on almost all parameters.

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