Steve Ballmer and Microsoft has made a lot of mistakes, but they are recovering. Windows Phone and Bing's market shares are growing daily, and Microsoft has just released Surface and Windows 8. Their flagship products Windows and Office are still large cash cows. More companies are developing Windows 8 tablets and convertibles.
Microsoft can most definitely keep up with the other tech giants of the world. They will have the money and resources to do so since their flagship products, Windows and Office, have had great success and will continue to do so. Microsoft will be just fine and they have nothing to worry about.
They're going to stumble into the new scene and make some mistakes, but Microsoft won't sink from a bad product or two (Windows Me, anybody?) They're going to be fine and if not be innovators in the new technological world at least be able to keep pace with those that they're trying to emulate.
Microsoft didn't become a world leader in technology by being a follower. The company has been incredibly aggressive with regard to innovation and showing great skill in adaptation. I would not be surprised if at some point Microsoft had to conduct its operations similar to how IBM managed to stay afloat with massive restructuring, sales and acquisitions in order to stay alive. These actions, however, are part of business, particularly technology business and as long as they remain in the position to acquire and innovate, Microsoft will be around for years to come.
Microsoft started a lot of the technology that we have today. Bill Gates, who is the founder of Microsoft, is a genius who created the software for computers. The internet, cell phones, tablets, iPhones, and other technologies were created due to Bill Gates creating Microsoft. I believe that Microsoft will keep up with other tech giants because they started the technology we have today!