No, that was not it. If you have paid a little attention, Nokias problem was Symbian. A Symbian that has never been totally renewed but in badly need of a total rewamp, and a Nokia that really didn't have software engineers to do it properly. The same problem with lack of software expertise was all too visible regarding Maemo/MeeGo.

In other words, Nokia just didn't have the expertise or knowhow to create the OS they wanted and needed. It is rather obvious, especially when looking at N97. Symbian^3 is OK and more capable than any other OS out there, but it takes way too long to develop for newer hardware, and is way too difficult to use for 3rd party app developers.

WP7 IS exactly what Nokia needs, there should be no doubt about it by now. The Symbian core is still good, but the WP7 core is just as good, also for lower end phones. And there is S40. But Nokia is in dire need of a light weight WP7 for low-middle end, and I guess 100s of MS engineers are working on that at the moment.

Have to add: The ONLY good thing that came out of Nokia during the last 5 years (software wise) was Qt. But Qt existed long before Nokia came into the picture. And to be honest, Qt is a tad on the heavy and slow side regarding UI for phones when compared with for instance Bada, Android and everything else. Qt works well on tablets, netbooks and so on, but needs major rework and much better and deeper integration for phones, but again that is where the problem is, no one at Nokia to do it properly.