Microsoft took a nearly $1 billion hit on Surface RT around six months after its launch because the company had simply built too many devices that it couldn’t sell. It was a near disaster for the entire Surface project.
Days after the news of the $1 billion write-down made headlines around the world, the Surface team of around 300 people was all standing in a lab they were still in the middle of building. Panay had called an all-hands meeting, and it was a tense moment for the team.
Tom Warren
I just said,, recounts Panay, his voice softening with emotion.Everybody stand up and take a step forward.They did, we all did together, as a teamI said,We have a plan, stay in the boat, keep rowing your oar. We’re going to get there. We have a plan, stick with it.
The success of the Surface, dismissed by many at launch, is a testament to the value of steadiness, of having confidence in a product vision and improving the finished product with each iteration. A lesson other Silicon Valley companies could do well to learn, especially Google with their myriad of competing chat apps and constant resets of the Pixel smartphone line.