[gamepsys]

I think the key to their strategy is the line "more fragmented set of device stores/platform is better for us."

Nadella is acknowledging that being an app means the platform hosting the app has a lot of leverage. Apple could potentially prevent Microsoft from releasing an update on any of the apps they publish on the App Store. Apple and Google essentially play a gatekeeping role between many Microsoft Users and Microsoft itself. This is big for Microsoft because they have a huge install base on Android/iPhone/iPad, and have some exposure to macOS. Teams without iPhone won't work. This is a topic Microsoft is specifically sensitive too because of it's history.

Nadella is saying it's worth investing in less popular devices in hopes that they become a bigger competition again iPhone and Android. In fact, Nadella is hoping Meta takes a small but meaningful portion of the market.