well by "software alone" - what i implicitly meant was that most employees would already have some hardware – latptop or desktop – in which case software given for free would motivate and encourage them to develop their ideas and even more apps.

If one has some hardware machine then one can install several OS’s in Virtual Machines for development and testing. one need not have separate hardware to develop apps for different OS’s.

If MS has to give hardware for free for whatever reasons, wouldn't it be a great idea to give the hardware to customers (non-MS) for free. This way if the product is really great; it will cause some buzz in the market and help the company market their product as well.

I just wonder if it’s really worth giving free hardware; instead of software. Once a software is given; and an employee discovers the potential in it; no matter whether the employee remains with the company(MS) or not; the person will become a lifelong investment and asset for the company - as he may/will buy product upgrades and related software – which may not be the case with hardware .