FAM

Microsoft online head: Search could be hugely profitable

REDMOND, Wash.--In the wake of Microsoft's search deal with Yahoo, online chief Qi Lu outlined why the business is so important to Microsoft and how the company hopes to make headway.

For one thing, he promised the crowd of financial analysts, it can be a huge money maker.

"When you are at scale it can be a hugely profitable business," Lu said.

The problem is that many of the costs are the same even if you are not operating at scale, which is the place Microsoft has found itself. "Even if you have one user … Read more

Mundie: The desktop of the future is a room

REDMOND, Wash.--While gesture recognition, such as that seen in Project Natal can help gaming, Microsoft's Craig Mundie showed how it will also transform the office.

In a demo, Microsoft's top research and strategy officer showed how the desktop computer of the future will use an entire office as both display and input device, with voice and gestures augmenting a number of touch screens.

"The real question is what killer apps (will mark the) new era and what will be the user interface that people use to get at them," Mundie said, speaking at Microsoft's … Read more

Ballmer: Windows will get more competition

REDMOND, Wash.--Kicking off a financial analyst meeting on Thursday, Microsoft CEO Steve Ballmer addressed the threats to Microsoft's biggest economic engine, its Windows business.

In addition to the usual issues of piracy and emerging markets and Netbooks, Ballmer acknowledged another challenge: rivals to Windows.

"We've got competition coming from a lot of different places," Ballmer said. He talked about the competition from Linux and Apple and the looming threat from Google's Android and Chrome OS.

"I don't know what Chrome OS is yet," Ballmer said. "Right now I just put … Read more

Not much Zune in Microsoft exec's speech

Microsoft's annual Financial Analyst Meeting, in which the company goes over its past fiscal year's results and highlights areas of focus for the coming year, is always a good opportunity for tea-leaf reading.

After CEO Steve Ballmer's introductory speech, in which he spent a lot of time talking about Microsoft's online business, efforts to compete against Google in search, and the aborted Yahoo tie-up, Entertainment and Devices President Robbie Bach was up. He talked about nearly everything in his business division. He started with the upcoming Xbox Live redesign. He talked about Xbox games. He spent … Read more