http://www.cnn.com/2009/TECH/01/08/microsoft.ballmer/index.html

Microsoft CEO Steve Ballmer kicked off the 2009 International Consumer
Electronics Show on Wednesday with an impassioned endorsement of PCs and
a sneak peek at the company's future Windows 7 operating system.

As expected, Ballmer announced that Microsoft is releasing a beta
version of Windows 7, which will be available for download beginning
Friday. The news suggests the world's largest software maker may be
giving up efforts to rehabilitate its often-maligned Vista operating
system, which was released worldwide in January 2007.

"We are on track to deliver the best version of Windows ever," Ballmer
told an audience of several thousand tech professionals and journalists
inside a cavernous ballroom at the Venetian hotel. "We're working hard
to get it right and get it ready."

Without mentioning the security and compatibility issues that have
dogged Vista, Ballmer promised that Windows 7 will make PCs faster and
easier to use. He didn't offer a timetable for its official release,
although Windows Vista went on sale more than two years after it was
issued in beta form.

Early reviews of Windows 7, which was leaked to the Internet in beta
form in late December, have been positive. iReport.com: Will you try
Windows 7? Are you attending CES?

The forthcoming operating system will have touch-screen capability,
side-by-side windows for comparison shopping and a "Peek" feature that
makes open windows transparent, allowing users to see the icons on their
desktop.

"Windows 7 makes it easier to move between the things on your desktop,"
said Microsoft group project manager Charlotte Jones, who gave a brief
demonstration of the system on the hall's giant display screens. Jones
said the new system also makes it easier to send files back and forth
between home computers. Video Watch what's on tap at CES 2009 >

Ballmer later yielded the stage to Robbie Bach, president of Microsoft's
entertainment and devices division, who praised the explosive growth of
the company's Xbox Live online gaming community. Bach also announced
forthcoming releases of new versions of Microsoft's popular "Halo" game
series: "Halo Wars," due Feb. 28, and "Halo 3: OSDT," which will ship in
the fall. Video 

Wednesday's address marked the energetic Ballmer's debut as CES keynote
pitchman, a job that had been handled for the past decade by Microsoft
chairman and industry pioneer Bill Gates. Ballmer's presentation came
two days after a similar, high-profile keynote at the Macworld show in
San Francisco by Apple, Microsoft's chief rival, and its vice president
Philip Schiller, filling in for the ailing Steve Jobs.

Unlike Schiller, Ballmer tackled the struggling economy head-on in his
remarks. He said that although the recession has created "a period of
reduced expectations," the tech companies that push forward now with
innovative research will fare better in the long-term than the companies
that scale back.

Ballmer said the convergence of screens on computers, TVs and mobile
phones is revolutionizing how people communicate with each other.

"Our digital lives will continue to get richer. There's really no
turning back from the connected world," he said. "We're on the verge of
the kind of technological transformation that only happens once every 10
or 15 years."

As if to prove his point, Ballmer also welcomed onstage program manager
Janet Galore, who gave brief demos of some Microsoft product prototypes,
including a tabletop-like touch screen and a flexible, wafer-thin
digital screen you can roll up like a piece of paper.

In a gentle swipe at Apple, which has gained market share against
Microsoft in recent years, Ballmer said the PC remains the best choice
for consumers seeking "value and power" in a computer.

"That's why we say, 'I'm a PC and proud of it!" he bellowed -- a
reference to a new Microsoft ad campaign that play off similar ads by
Apple.

Ballmer also announced that Microsoft has formed a partnership with
Verizon Wireless to add Live Search tools to all Verizon smart phones in
the U.S.

He also announced a partnership with Dell, which will soon come loaded
with Microsoft's Windows Live suite of software, and links between
Windows Live and the social-networking site, Facebook.

Reaction to the 90-minute presentation, which also included a
performance by Australian musical-comedy trio Tripod, was mixed.
Attendees praised the lively pace of Ballmer's talk, but wished he had
made more news.

"I really loved what I heard tonight. There's definitely a lot of things
to look forward to," said Sebastian Mineau, a Montreal-based blogger
with MSN Canada. "It [Windows 7] wasn't a big surprise. But it was still
nice to get the confirmation straight from the lion's mouth."

"It was very disappointing," said Ben Sillis, a reporter with
ElectricPig, a British tech site. "CES is supposed to be about new
products, new stuff. And this had all already been leaked. There was
nothing new."

Some 2,700 exhibitors and 130,000 attendees are in Las Vegas for CES,
the nation's largest consumer electronics trade show. The event runs
through Sunday.
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