REUTERS/Lucas JacksonPanos Panay, the general manager of the team behind the Microsoft Surface holds up the new Microsoft Surface tablet pc during the launch event for Microsoft Windows 8 in New York, October 25, 2012.

Panos Panay, the man behind Microsoft's Surface line, said in an interview with GeekWire that the company got "a lot of compliments" from PC markers after it launched the Surface Book laptop.

"It's not like my head's in the sand or anything," said Panay, addressing the reaction from other hardware makers. "I will tell you, we've gotten a lot of compliments." 

Behind closed doors, however, PC makers were not happy, contradicting Panay's narrative. 

The bind for PC makers is this: Microsoft makes Windows. PC makers need Windows to run on laptops. Microsoft also now makes a laptop and could leverage Windows to make it the best laptop. PC makers are helpless as they feel there are no other viable operating systems. 

All of this drama is set on a backdrop of rapidly declining PC sales which, for a company that only sells PCs, is not good news. 

During the launch event for the Surface Book, Microsoft was very clear that it had been transparent about its plan. However, ASUS chairman Jonney Shih said his company was not informed.

"I think we are going to have a serious talk about [the Surface Book]," said Shih to Terry Myerson, Microsoft's vice president of Windows and Devices. 

Microsoft has seen big increases in the amount of revenue it receives from the Surface line. The company is expecting high demand in the holiday quarter and continues to push the device to enterprise customers.