"Actually Windows + Office revenue is up and still increasing...."
I beg to differ.
My (small) company is (/ was?) a Microsoft reseller, simply because I think there's a good and honest market for desktops with Windows 7 and Office 2010. I also think quite positively about Server 2008. Heck, we even sold several solutions and some customers who we're still in contact with are still quite happy with their environment(s).
But the thing is; I can't sell Windows 8. Not merely because I hate it with a passion and steer clear from it best I can, but because my company simply doesn't have the resources required for its after sales. Meaning: getting customers on the phone at a regular interval because they're having a hard time with Windows 8. This goes double when those customers have upgraded from Windows XP. That is our experience, we sold a few Windows 8 licenses to customers who upgraded their Windows XP versions and didn't want the "old" Windows 7 but the most current Windows. Even though the EOL of both products lies closely together.
A first walk though on site went normally. But then, several days later, the real issues began. Because those customers don't turn to Microsoft or the Internet or whatever for support. They turn to us. Rightfully so, after all we sold it to them, but ye gods...
And for those who don't understand my frustration: the after sales,or support, goes out of our own pocket. We make a profit on selling the license, we make a lot more profit on the time required to setup their environment, but we don't make any money on trying to help people out over the phone. That only costs us time and time is money.
Office 2013? Apart from Microsoft's own push of their 365 subscription model this is also something I'd rather not sell. In our experience a lot of people who upgrade from 2010 (or earlier) run into issues as well. Usually small issues, but annoyances still.
Personally I think that Office 2013 has had a huge makeover to first make sure it would look at feel as closely as possible to the Office 365 web interface, which I consider a huge setback given the limited functionality of said web interface. But second to cover for the lack of functionality which you have in Windows 8.
Think about it: in Win7 I can start Word from my start menu or jump right to a file which I'm after. If Word sits in the "recent program list" (the left side of your start menu) or has been docked on the task bar then you can simply hover or right click and enter the jumplists. All your recently used files, with also an option to pin files which you need to be available at all times.
Windows 8 doesn't have this any more. That is; you can still pin icons on your desktop application's taskbar, but that makes working a whole lot more trivial: "Click start, click the desktop, right click the Word icon and access the jumplist".
So what did MS do? The moment you start Word you're taken directly to the "back stage" view where you can opt to start a new document or open an old one. You can't tell Word that it should always start with a new document unless you're opening one yourself.
All of those changes annoy a lot of Office users it seems. Quite frankly we saw our sale numbers go down, not up. But do keep in mind that we're a rather small company, and selling software and the likes is not our core business.
Microsofts problem is that they're still not used to competition. They're totally clueless. Even up to a point where they introduce change for the sake of change because, in their vision, "change sells". Apparently unaware that if people don't like said change they either don't upgrade or worse: bail and jump on the competitors bandwagon.
Amazingly enough we did see a rise in people asking us about OpenOffice (after which we also make them aware of LibreOffice) as well as asking us how much it would cost them for us to come over and install it.