Does Microsoft make the software or the hardware for its computers?

Microsoft do make some forms of computer (or rather, have them made to sell under their own banner). However the conventional PC is not made by Microsoft, who only supply the Windows operating system and Office software.

Up until recently only the software. They now also make hardware through their Surface line of laptops, desktops & tablets.

Microsoft don't manufacture computers. The Microsoft Surface, for example, is a series of touchscreen Windows personal computers and interactive whiteboards designed and developed by Microsoft. The devices are manufactured by Pegatron.

Microsoft as currently Manufacturing the surface and the Surface Pro and a few other similar computer they are manufacturing both the hardware and the software for this computer and others like it and they are expanding in there making of hardware.

yes

Possibly both or neither or one