Are Microsoft loosing their way with user experience?

Over the past few months there has been a fair bit in the industry press about Apple and Microsoft apparently loosing their respective grasps on the market.

Apple has been (from what it appears) struggling to get a new product into the market, and is instead just refreshing existing lines.

Microsoft is slipping in its game too - the latest gaff has to be the way it's handled Windows 8.1. The recent U-turn about not releasing the RTM version to the development and sys admin community was welcome, but it is a disagreeable find to discover that you can not do a straight upgrade of Windows 8 to 8.1. Instead it enforces a clean install, while offering you the ability to save your files. According to all the recent MSDN coverage (literally in the last 24 hrs or so), the "release" version will support this, but I have to ask why Microsoft decided to release essentially an incomplete version?

Historically the whole idea of RTM or Gold copies were that these were the images that were sent for physical manufacture. These days things still follow this pattern, but now companies such as Microsoft tend to "tweak" things before they are actually released - in theory to provide a better quality product, but in this case you have to wonder. Releasing an incomplete, inferior product a month before the General Availability is annoying, and down right disruptive to the development community. Microsoft's attitude? It doesn't matter. You shouldn't be using this release for anything except testing, so why can't you build a new machine. 

Has the development industry lost track of what should happen for release cycles? Are we now expecting too much, too quickly from software companies?

Or have the big boys (Apple and Microsoft for example) started to loose their way with handling user experience?