> Comparing this to an M1 Mini is a bit odd since they're not competing with each other at all, and Microsoft is limited by what Qualcomm et al can put out.
Microsoft is a multi billion dollar company, they are not limited, they made a bad business decision to depend on a 3rd party to build chips for them
Their products are meant to be competitive against the competition, they should be compared for what they are, computers
Venturing into a product category just because your competitor is doing the same is not great motivation, and is a distraction at best. Microsoft has no interest in selling computers[1] in large volumes: it's long-term OEM partners may not appreciate Microsoft cranking out computers in anger. The Surface line seems to be a Halo product for Windows, or examplar to OEMs (and I'm guessing Microsoft mostly works as an integrator of existing parts made by other manufacturers).
1. Renting them out via Azure definitely interests them.
Microsoft is a multi billion dollar company, they are not limited, they made a bad business decision to depend on a 3rd party to build chips for them
Their products are meant to be competitive against the competition, they should be compared for what they are, computers