It effectively killed their audio market overnight, with the fact that everything had to go over their DRM stack.
We could have had machines with DSPs for sound, GPUs for accelerated array math, and general purpose CPUs for everything else. But MS decided that for us... Even though us Linux people can use advanced DSPs and the like.
The switch from XP to Vista and the concurrent death of CRTs were a lot about holywood.
Sound Cards, analog screens and advanced video programming (ie: changing how the screen acts directly instead of sending pixels on an standard defined manner) all allowed people to skip DRM and also all prevented new formats from getting popular.
This is still that way, note 4k video cards and screens showed up at the same time a new bluray variation is coming out, despite tech for that being ancient. (in 1995 Silicon Graphics was selling workstation that could push in the monitor 48bit colour images at resolutions around 1080p, if you had deep pockets 4k 48bit was possible...)