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Gates: Google in 'honeymoon period' but Microsoft making strides
(AP)
Updated: 2006-01-05 14:38
Rival Google Inc. may be nipping at its heels, but Microsoft Corp. wasn't
flashing any defeatist signs as it showcased its latest plans to help make
living in the digital world safer, easier and more fun.
In his 10th keynote to kick off the International Consumer Electronics Show,
Microsoft Chairman Bill Gates highlighted the Windows Vista program, a major
operating system upgrade set for release later this year. He also discussed how
Microsoft's Xbox game console and media-oriented software for PCs and
electronics gadgets are aiming to help consumers connect more easily with each
other, get more entertainment, and deliver more high-definition video.
"Consumers are getting more and more connected, and software is at the center
of that," Gates said Wednesday.
Gates' speech was just two days before Google hosts its first CES keynote, in
a sign of the Internet giant's rising influence. Rumors are swirling among
analysts that Google may unveil a Google-based PC, or some kind of Google-based
software that would compete directly with or at least indicate the increasing
irrelevance of Windows desktop software, Microsoft's bread and butter.
In a memo to his top executives in November, Gates acknowledged that
Microsoft should act quickly in offering Web-based services to best formidable
competitors.
But in a phone interview preceding his address, Gates downplayed a Google
threat.
"I hear they're coming out with a robot that will cook hamburgers, too. Let's
spread that rumor _ there's nothing they can't do," Gates said in jest.
On a more serious note, Gates added: "Whatever they announce, they announce.
They're in their honeymoon period, and anything they announce gets hype ... They
will obviously branch out beyond Internet search, but I think the expectations
won't live up to reality."
For now, Microsoft is cheered by its own progress in promoting digital
entertainment and services, and bringing its platform to an increasing number of
electronics devices.
Some examples: the brand new Windows-based Treo smartphone from Palm Inc.;
the upcoming movie download service from Starz Entertainment Group that will
allow users to view full-length films and TV shows on a crop of new
Windows-based portable devices; and a growing slate of entertainment-oriented
machines based on the Windows Media Center Edition. One of the PCs will be
smaller than a shoebox and cost under $1,000 (euro827).
Gates also announced a multiyear partnership with satellite TV provider
DirecTV Group Inc. to get the company's satellite video directly onto Media
Center-based devices.
Media Center-based PCs picked up a lot of traction in 2005, Gates said.
Cumulative unit sales to date are 6.5 million worldwide, of which 5.5 million
were logged last year, he said.
In addition, Intel Corp., which is promoting its so-called Viiv chip
technologies aimed for multimedia machines for the networked, digital home, will
require that Viiv customers base their products on Microsoft's Media Center
Edition.
Meanwhile, demand for the Xbox 360, which debuted in late November, is
exceeding the company's own expectations. Microsoft is on track to have shipped
4.5 million to 5.5 million units by the end of June, Gates said. Shortages
experienced during the holidays were due to high demand and normal manufacturing
complexities in building a new product, he said.
The Windows Vista operating system is also on its way, though a specific
release date in 2006 has not yet been announced.
Gates discussed and demonstrated for the first time some of the new
components of Vista during his keynote.
Vista will feature faster, improved searches for data, music, photos or video
content. It will have an updated media player allowing users to more easily play
digital content from any PC in the house. Vista will also integrate for the
first time parental controls, specifying hours of use, or limiting, for
instance, the kinds of video games a child can play, based on the industry
rating.
Plus, Vista will add support for high-definition video via the burgeoning
"CableCard" technology that lets users get digital cable simply by inserting an
access card from their cable operators.
The year 2006 will be an exciting one for high-definition video, Gates said,
as more content _ from films to video games _ will be produced in the
higher-resolution format. The Xbox 360 will later this year have an external
drive to play HD-DVDs _ one of the newest high-definition DVD
formats.
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