Cars - been there done that
Watches - will see, I think this whole smart watch story is just BS (but that's maybe because I'm getting old)
Phones & Tablets - can't beat Android in that arena; take a piece of it's market maybe
Web Technologies - their presentations where quite impressive (from the brief reading I've done) but MS has their own dev stack server side which ain't a joke
Dunno what else they presented in I/O, been busy with work
Considering MS is taking the Services route, I doubt they need to worry, albeit they will loose some customers, and win some.
Oh boy, this thread is going to turn out well...
And MS is fine. They are not going away anytime soon if at all.