Microsoft has a well-known review system that engenders various feelings in various people, not all of them postive. I have posted here before how the stack ranking part is actually low on my list of objectionable things about the whole process, but it is what people know so it is what people cite. I have heard stories, always apocryphal, never by anyone willing to put their real name behind it, about how people are constantly obsessed with reviews and stabbing their teammates in the back left and right to get a leg up. I have never once witnessed that behavior or even heard of a remotely plausible instance of that happening. That said Microsoft is a big company, so I am sure it has/does happen somewhere. I dispute it is rampant or common.
I have heard stories of people that are terrible at working in groups and don't do well. I have heard stories of people that have an opinion of their own skills that seems objectively divorced from reality. I have heard stories of management hubris that ultimately doesn’t pan out. Some of the people that play a starring role in these dramas then invent conspiracies about plotting colleagues causing them to rank poorly, incompetent managers that didn’t recognize their delicate snow-flakism or any other number of explanations that conveniently don’t attribute any share of the blame to themselves. I suspect those tend to be fantasies made to soothe one’s ego.
I think anyone with knowledge of internal state at Microsoft could posit a much better explanation of why they have 'flopped in just about every field it's entered for the last decade' that doesn't involve Machiavellian competition between employees. Hell, reversion to the mean pretty much would cover most bases without any kind of comical soap opera drama needed.