The thing is, during the 95/98/ME/XP/Vista days Microsoft had less competition in the consumer computing space, smart phones weren't really a thing, and a PC was "the" way to get online. Nowadays everyone and their dog has an iPhone or Android device instead, and ever dwindling numbers of people even bother to have a PC anymore. So in modern times, there is a nonzero possibility that on a consumer level at least, Microsoft might finally slide into irrelevance. That's not to say they'll go out of business anytime soon, but they might not be able to remain the Microsoft we've known so far for too many more years.
Nerds use Linux. A lot of people who want to buy an off the shelf computer that "just works" buys a Mac. And everyone else just uses their phone for everything.
Microsoft doesn't actually do anything (except make the XBox, I guess) that non-corporate users give a shit about except "make computer machine go" and "stupid subscription ribbon bar program I need to use to open files work sends me."
This is why M$ has been so gung-ho about their path to enshittification in recent years, I'm sure. This is a profitability thing. They see the writing on the wall that just selling operating system and office suite licenses to rubes is not going to remain a profitable business model much longer. Instead, they have to scrape and datamine and sell adds and push subscriptions and all the rest of it for alternative recurring revenue, because no member of the public will willingly pay for a Windows license anymore. I sure as hell won't... If I need Windows, I'll pirate it. And there's no way they are shifting as many OEM licenses as they were in the early 2000's. People aren't buying computers like that anymore.