Microsoft

Microsoft said Tuesday that its investigation has turned up no evidence that anything in its November security updates should be causing users to encounter a so-called "black screen of death."

"Microsoft has investigated reports that its November security updates made changes to permissions in the registry that that are resulting in system issues for some customers," Microsoft security response communications lead Christopher Budd said in a statement. "The company has found those reports to be inaccurate and our comprehensive investigation has shown that none of the recently released updates are related to the behavior described in the reports."

Microsoft said it was not contacted by British security firm Prevx before that company went public with its claims. Microsoft said it has reached out to them to let them know the results of its investigation.

The company said on Monday that it would look into the matter, but issued an update later in the day saying it could not verify any issues.

"Our support organization is also not seeing this as an issue," Budd said on Tuesday. "The claims also do not match any known issues that have been documented in the security bulletins or (knowledge base) articles.

Update, 3:15 p.m. PT: Prevx posted an updated blog saying that it has done additional testing.

"Having narrowed down a specific trigger for this condition we've done quite a bit of testing and re-testing on the recent Windows patches," the comapny said. "Since more specifically narrowing down the cause we have been able to exonerate these patches from being a contributory factor."

The company also offered up a mea culpa to Redmond and said it also recommends users keep patching their systems promptly. "We apologize to Microsoft for any inconvenience our blog may have caused."

Microsoft is teaming with Live Nation to use a music-themed site to tout Windows 7.

(Credit: Screenshot by Ina Fried/CNET)

Borrowing a tactic it has used to tout Internet Explorer, Microsoft on Tuesday launched a music tie-in to help promote Windows 7.

Dubbed Section 7, the site offers discount concert tickets and is being done in conjunction with music promoter Live Nation. Among the things the site features are $7 concert tickets and $7 merchandise for select artists.

"Section 7 offers music lovers a host of insider benefits, including exclusive ticket buying options, discounts, and opportunities to meet their favorite artists, fan clubs, great deals on tickets, merchandise and more," Microsoft said in an e-mail.

The first 37,000 people who sign up also get a voucher for a free pair of tickets to a concert at a Live Nation club or theater.

Microsoft says it is trying to "simplify the music experience one concert at a time." That seems a stretch, but hey, free concert tickets sounds pretty good. Locations are limited, though, so not everyone will have a local option.

MISSION VIEJO, Calif.--On my way to last month's Professional Developers Conference in Los Angeles, I took a small detour to Orange County to check out the recently opened Microsoft Store there.

Although I had heard plenty about Microsoft's nascent retail effort, I wanted to get a firsthand look.

At a glance, it's easy to understand why the store draws so many comparisons to Apple's stores. The outside of the store features an expansive glass window with a stylized Microsoft logo at the top. Inside, products are sorted into themed sections, with a help desk and theater in the rear, and all around are T-shirted enthusiasts ready to answer any and all questions.

From that standpoint, it's nearly a carbon copy. But even as it mimics much of the Apple approach, Microsoft finds ways to customize its message to its different role in the world. When it comes to laptops, for example, Microsoft is eager to lay out dozens of choices to highlight the variety of prices, sizes, and options available to those buying Windows.

Peeking into Microsoft's retail store (photos)

The company is starting small--opening just two stores so far, this one and another in Scottsdale, Ariz. The goal, Microsoft said, is to better understand what customers want at retail and, ideally, persuade larger retail chains such as Best Buy and Office Depot to adapt some of the more successful techniques to their stores.

Apple, by contrast, has become its own most significant channel with its online and retail stores, even though its computers and iPods can also be found at places like Best Buy. From a dollars perspective, Apple's retail stores alone accounted for $1.87 billion of the company's $9.87 billion in total revenue during the most recent quarter. Next year alone the company plans to open 40 to 50 stores, with more than half of them overseas.

But if its scale is different than Apple's, its goal is largely the same: to offer the best possible experience when buying its flavor of PCs and accessories, as well as to be, well, cool.

To that end, Microsoft has pulled out every tool in its arsenal, from PCs to phones to the Xbox 360, as well as a huge "video wall" made up of dozens of 42-inch flat screens connected to form a single, though constantly changing, image or video display.

But by far the biggest draw is a product that isn't even for sale--the Surface tabletop computer.

During the several hours I spent at the store, it was that device, more than the laptops, that drew people in and captured their attention.

Josh Griffin stopped in at the store with his three kids, with all four quickly heading to the Surface.

"This is cool," said Griffin, who came into the store to check out Windows 7 among other things. "I've read about Surface before, but never been able to see it. It's actually a little cooler than I thought it would be."

The three kids began carving virtual pumpkins on the Surface while we chatted, but eventually Griffin turned his attention back to the tabletop computer.

"Can I do one?" Griffin asked his kids, trying only somewhat successfully to elbow his way in.

Surface, though, isn't the only thing worth pointing out.

Microsoft has taken an interesting approach to selling PC software--the category it is best known for. Although Microsoft stocks dozens of software products on its back shelves, hundreds more titles are available on-demand. Customers can browse on a touch screen through the various options and once they select a product, it can be burned to disc in the back of the store, complete with a professional-looking disc label, DVD case, and manual.

"We're like legal pirates," said Steven Precious, COO of Tribeka, the company whose system Microsoft uses in its stores. Precious just happened to be checking in on the Mission Viejo store while I was there.

The software maker also uses its position as retailer to influence what software is loaded onto the PCs it sells. While Microsoft the operating-system vendor is required by antitrust decrees to allow computer makers to install whatever software they wish, Microsoft the retailer is allowed far more say.

As a result, PCs sold at the Microsoft Store come with what Microsoft calls its "signature" software collection--a bundle that includes Windows Live products, Zune jukebox, Bing search engine and Microsoft Security Essentials antivirus software.

Having its own stores also allows Microsoft to try to match other areas in which Apple benefits from its direct contact with consumers, such as offering in-store support. Where as Apple has its "genius bar," Microsoft has an "answers desk." Both Apple and Microsoft offer a theater in the back for various trainings.

Microsoft is also trying to match Apple's passionate workforce. The retail store employees are made up of Windows enthusiasts, some of whom moved across the country to work at a Microsoft store. As evidenced by a recent YouTube video, the staff can be accused of many things, but a lack of passion is not one of them.

One of the key questions in my mind, though, is whether business will be brisk enough to allow Microsoft to profitably operate. The software maker has said it intends to run its stores as a business, meaning that to expand well beyond its current two locations, it will need to show an ability to not just look pretty, but also make money.

Correction: An earlier version of this story incorrectly reported the amount of revenue Apple gets from its retail and online stores. Apple got $1.87 billion in revenue last quarter from its retail stores alone; the company does not break out sales from its online Apple store.

Microsoft has begun a campaign to actively urge users of its 8-year-old Internet Explorer 6 browser to upgrade.

After launching IE 8 in March, Micosoft has concurred with critics that IE 6 is outdated. Many people have dropped the older browser, but the remaining users are often the tough cases--those who don't have a choice because of corporate computing policy or who aren't tech-savvy enough to realize there's a reason to move on.

This eBay 'Web slice'--basically a live bookmark in Internet Explorer 8--is part of Microsoft's effort to get people to upgrade from IE 6.

(Credit: Screenshot by Stephen Shankland/CNET)

It's this latter population Microsoft is targeting with a campaign that runs through June 2010 that touts its own IE 8 as a better alternative. The campaign's first visible elements are a video aimed at online holiday shoppers and a Web slice to promote daily deals at eBay. Web slices are basically live bookmarks that can show miniature Web pages in the browser.

"What we're doing with the outreach is help users understand how to protect themselves against social engineering threats that exist and to help people understand how Internet Explorer 8 puts people in control of their own privacy online," said Ryan Servatius, senior product manager for Internet Explorer. Security was one of the big problems with IE 6, and Microsoft now boasts that security features in IE 8 block 2 million malware sites a day.

According to Net Applications' statistics, Internet Explorer 6 is still the most widely used browser, with 23.3 percent share of usage in October, followed by IE 7 at 18.2 percent and IE 8 at 18.1 percent. The newer browsers are gaining on IE 6, but so are rivals including Mozilla's Firefox, Apple's Safari, and Google's Chrome.

Web developers often gripe about having to support IE 6, which doesn't support many modern features for more sophisticated Web sites and even applications. Microsoft acknowledges that it's holding back development of the Internet, too.

"The best thing a user can do to advance the Web is to help move people off IE 6," Servatius said.

Of course, many will upgrade to IE 8 by buying Windows 7. IE 6 was the browser that shipped with Windows XP, which remains entrenched, but there are signs Windows 7 is a more compelling successor than Windows Vista. That could help the corporate customers move away from IE 6, Servatius said.

"As enterprises migrate from whatever operating system they're using today to Windows 7, that's going to help deprecate IE 6," he said. "What we're doing is working both with consumers worldwide and IT professionals to help them understand what the benefits of a modern browser are."

Microsoft said on Monday that it is looking into reports that its latest security updates are causing some serious problems for certain users.

The problem has been dubbed the "black screen of death" because those affected are left with a black desktop and little else on their screen.

"Microsoft is investigating reports that its latest release of security updates is resulting in system issues for some customers," the software maker said in a statement. "Once we complete our investigation, we will provide detailed guidance on how to prevent or address these issues. "

The issue was noted by British security firm Prevx on its blog on Friday, with that company also offering a suggested fix for the problem.

"The symptoms are very distinctive and troublesome," Prevx said. "After logging on there is no desktop, task bar, system tray or sidebar. Instead you are left with a totally black screen and a single My Computer Explorer window."

Prevx suggested that the black screen issue can occur on a wide range of Windows machines from Windows NT through Windows 7. In its blog, Prevx said there appear to be many causes of the black-screen issue, not all of which are related to the security update.

"In researching this issue we have identified at least 10 different scenarios which will trigger the same black screen conditions," Prevx said. "These appear to have been around for years now." As for the latest security update, Prevx said changes to the way registry keys are handled appears to be the reason it is causing black screens.

I've asked Microsoft what it recommends users should do for now and will post its answer here.

Microsoft released its latest security updates on November 10, issuing six bulletins addressing 15 flaws.

Update, 3:35 p.m. PT: A Microsoft representative said that the company continues to recommend that customers "test and deploy" the November security updates.

"Based on our investigation so far we can say that we're not seeing this as an issue from our support organization," the representative said. "The issues as described also do not match any known issues that have been documented in the security bulletins or (knowledge base) articles."

Peter Klein, Microsoft's new CFO

(Credit: Microsoft)

Microsoft Chief Financial Officer Chris Liddell is leaving the company at the end of the year, the company announced Tuesday.

Liddell has been Microsoft's CFO since 2005, but the past 18 months have been especially long, as Microsoft debated whether to acquire Yahoo and navigated the choppy waters of the recession with its first-ever companywide layoffs. He will be replaced by Peter Klein, who had been serving as CFO of the company's Business Division, which develops and sells Microsoft Office.

In a statement, Liddell said he was looking to do something with his career beyond serving in the chief finance role.

"Chris and his finance team have accomplished a great deal over the past four and a half years. The team is deep and strong, and has an excellent record of building value for our shareholders," CEO Steve Ballmer said in prepared remarks distributed by Microsoft.

As of the close of Tuesday's stock market, the value of Microsoft's stock had increased by 18 percent since Liddell made his debut as CFO.

This story was clarified on Wednesday to reflect that the layoffs referenced above were Microsoft's first companywide layoffs. In the past, the company has cut jobs in specific units.

Steven Sinofsky may not be talking about Microsoft's future Windows plans, but the Windows Server team appears to see more value in letting customers know its road map.

In at least two slides apparently shown at the Professional Developers Conference in Los Angeles this week, Microsoft suggests that a major release update to Windows Server is due around 2012, with one of the slides confirming the Windows 8 code name.

I've asked both the desktop and server teams for more context on the slides, which were noted this week by blogger Stephen Chapman. A similar slide cropped up--that time in Italian-- in August.

For his part, Sinofsky sat completely stone-faced when I asked him in our interview Wednesday where Microsoft was at relative to Windows 8--later noting that he hadn't even used the word Windows next to the numeral 8.

"I didn't say any of the words--Windows 8--those were all your words," he said

The 2012 time frame would roughly coincide with Windows Server's plans of having a minor release every two years or so and a major release every four years. It released Windows Server 2008 R2, a minor update, earlier this year as the desktop team released Windows 7.

In recent years, Microsoft has tended to line up its desktop and server releases fairly closely, although in this case the desktop OS was probably a more significant release than its server counterpart.

LOS ANGELES--While some have criticized Steven Sinofsky for being tight-lipped, the Windows boss insists that he is being prudent, not secretive.

"Everybody wants to know what's coming and what's next." But, he said, talking too soon, too early is actually a bad thing that just leads to frustration.

"You reacting to some nightly developer build isn't really productive to anybody," Sinofsky said in an interview at this week's Professional Developers Conference.

Sinofsky says that people don't want to show up to a restaurant and watch a potato being peeled and taste it half-cooked. For the same reason, he prefers to not talk about things until they are well, fully baked.

"It's hard to imagine what else you want to see while it's in progress," Sinofsky said. "I don't want to see the daily cuts of a movie. I want to see what the director thought at the end."

As a result, Microsoft didn't show Windows 7 until last year's Professional Developers Conference, just a year before the product was released. That's in sharp contrast to the prior version of Windows, which was first shown as Longhorn back in 2003. It ultimately suffered through numerous delays and significant changes before being released as Vista.

Windows boss Steven Sinofsky said his Windows philosophy boils down to a single word--responsibility. "There's not another project in software to work on that a billion people use and we take that really, really seriously."

(Credit: Ina Fried/CNET)

From early indications, Sinofsky would appear to be on to something. While Vista was largely panned by critics and shunned by businesses, Windows 7 has thus far had strong early sales and gotten high marks from reviewers.

It's some of the same philosophy Sinofsky took in his earlier days, when he led development of Microsoft's Office franchise.

"Normal people have stuff to do," he said.

That's also why he doesn't really look for public feedback until the software is largely done.

"We don't want feedback on a screenshot," he said.

Sinofsky shifted from Office to Windows in March 2006 and earlier this year added responsibility for the business side of Windows as well, becoming the unit's president.

He said his philosophy toward Windows really boils down to a single word--responsibility. "There's not another project in software to work on that a billion people use and we take that really, really seriously in the hallways of our dev team," he said.

Sinofsky also isn't one to be swayed by emotional arguments for or against a feature. If you want his attention--show him the numbers. He said he wants feedback, but he wants that feedback to "be based on data and not assertions or opinions or anecdotes."

During his PDC talk on Wednesday, he referred to the other approach as "testosterone-based engineering."

"It turns out we did a lot of things by that method," Sinofsky said. Often times, decisions on which features to include in the next version of a product were made that way. People, Sinofsky said, would basically just ask their friends.

"Let me get this straight," Sinofsky said. "You are going to ask your 10 friends who all go to Fry's and build their own gaming machines and that's going to be the way we decide which features go in the product?"

That, he said, "seems a little homogeneous. It seems a little limited in its reliability."

But these days, Microsoft has a better option, gathering lots and lots of data from real-world use. Quite often, he said, the data will show things that might not be intuitive to Redmond's engineers.

As an example, he showed a graph at the conference that showed the huge variety of graphics resolutions that Windows users were operating at, including a significant number with VGA-resolution displays. Folks in Redmond initially assumed they didn't really need to worry about such low-resolution screens.

True to form, Sinofsky was emphatically silent when my questions drifted toward the future. I asked whether we might see a beta of Internet Explorer 9 at Mix and he literally just sat there silent until I asked the next question.

Later on in the interview, the mere mention of Windows 8 got the same stone-faced glare.

"I won't ask you what's in Windows 8, but can you talk at all (about it)? You mentioned that you are a few weeks into designing IE 9," I said. "Are you a similar amount into Windows 8?"

Silence. More silence.

"I didn't say any of the words--Windows 8--those were all your words," he said. "Next."

Sinofsky did have some interesting things to say when I asked for his take on competitors like Google and Apple.

"You have to take it very seriously," he said of the competitors. "That's always, always true in the software world. In the software world it doesn't take a lot to have a dramatic shift in how people perceive you or how they act. It's just very important no matter what your perceived or real or measured share is at one moment, it doesn't take a lot to change it down the road."

Windows 7 isn't just getting good reviews, it's also selling well, CEO Steve Ballmer told shareholders Thursday.

Delivering opening remarks at Microsoft's shareholder meeting, Ballmer said that Windows 7 was off to a "fantastic start."

"We've already sold twice as many units as any OS in a comparable time frame," Ballmer said. "Windows 7 is simply the best PC operating system that we or anyone else has ever built."

Microsoft CEO Steve Ballmer delivers a point at the company's Worldwide Partner Conference in July.

(Credit: Microsoft )

By last week, Windows 7 accounted for 4 percent of Web-accessing devices, according to Net Applications; it took Vista more than seven months to reach that level.

Addressing the overall economy, Ballmer reiterated that things seem to have stabilized.

"The economy has, at least for now, leveled off," he said.

The meeting is still going on and has just entered the question-and-answer session and I'll update this post if anything interesting comes up. So far, though, it's been mostly about local and legislative matters, rather than technological issues.

Microsoft vs. Apple
There was one fun one from a shareholder who noted that young people tend to gravitate toward Macs and that Apple seems to be outmarketing Microsoft.

"You've got a real bad image out there," the shareholder said. "You sure don't have that younger generation."

Ballmer acknowledged that there are "certainly always opportunities for improvement."

"We all watch television," he said.

That said, Ballmer noted that "96 times out of 100, worldwide, people choose a PC with Windows."

He added that even in the toughest market--the high end of the U.S. consumer market--Windows is chosen 83 times out of 100.

"That doesn't let us rest on our laurels," Ballmer said. "Apple has picked up a couple tenths of a percent of market share."

But those couple tenths matter, he agreed. He said the downturn in the economy has actually bolstered Windows' competitive position. "People understand that Macintoshes are quite a bit more expensive."

Another questioner asked why Microsoft can't better compete against Apple's iPhone and other smartphones.

"Certainly our objective is to have the leading position," Ballmer said. "I think we have a lot of opportunity to improve...Undoubtedly we've got our work cut out for us."

He did say that Microsoft has put a lot of smart people on the task.

"We've got our heads down to do our best," Ballmer said.