I highly doubt that is the reason, cause if it was, most people would go to iPhone as you can now pirate games without even Jailbreaking.
Reason Android sells is simple, price and marketing. For the average consumers price speaks volumes and up until the recent 520 range Lumia's where not exactly cheap.
Reason why Windows Phone is not selling for most people is because of the 1.)lack of Applications, 2.)Cost of the device, and for developers its the lack of consumers. My co has exactly
5 Windows Phone applications and we wrote em off as "training fees" as the number of people interested in Windows Phone applications do not even register. (We not abandoning the platform but its not exactly worth it to go full on in this segment)
Now if Microsoft truely want their platform to excell they will have to:
a: Fix the mess called a app market. Splinting reviews between countries sucks for start-up's. Example:
http://www.windowsphone.com/en-za/store/app/battlestats/8faa9f0b-04f6-4d0a-807e-9756679e3a44 (No reviews, no installs)
http://www.windowsphone.com/en-us/store/app/battlestats/8faa9f0b-04f6-4d0a-807e-9756679e3a44 (Some reviews + installs)
http://www.windowsphone.com/en-nz/store/app/battlestats/8faa9f0b-04f6-4d0a-807e-9756679e3a44 (1 review....
If you look at the app from SA you would think no one installed it....
b: Incentivising development, be this done with more competitions or even going to main players offering them money to port existing hits might be a good idea.
c: Sell phones at or below cost on certain models, just to get the market up and running. Spending that 8 billion as a loss on device sales would have grown the market a hell of a lot more than a Nokia buy out. If they for example let the Lumia 520's sell for R800 without a contract I can bet you they would have had a lot more devices out there, and once people get a taste they are more likely to stick to the ecosystem in future upgrades.