Bill Gates says connected tech hype now reality

Las Vegas, Jan 8: Microsoft Chairman Bill Gates on Sundayshowed off a hatbox-shaped computer for the living room and a videogame machine that plays Internet TV, arguing years of hype about aworld of connected technology finally was coming true.

Computers will come in all shapes and sizes as Microsoft'slong-awaited new Windows Vista reaches consumers later this month,Gates said as he opened the annual Consumer Electronics Show in LasVegas, the largest of its kind in the United States.

He also said Microsoft would offer an Xbox 360 game console thatdoubles as a set-top box for its fledgling Internet Protocol TV (IPTV)service, which delivers high-quality video over Internet networks.

The Microsoft co-founder highlighted Vista's ability to handlevarious forms of digital media on an eye-catching, round living roomcomputer, shaped like a sleek hat box, from Japan's Sony Corp. and atouch-screen desktop PC from Hewlett-Packard Co.

''The word PC is now a word that encompasses a lot of differentthings, from a 6-inch screen to a 60-inch screen,'' Gates told Reutersin an interview before the speech.

The new PCs running Windows Vista will be released to the public on Jan. 30.

Analysts forecast that new PC sales could get a boost over thenext few years as businesses and consumers upgrade to Vista, lauded byMicrosoft for its improved security, flashy graphics and easier searchfor hard drive content.

''It's a platform for the industry, but with a lot of sexy new features for the end-user,'' Gates said of Vista.

Gates' annual speech at the technology industry's premier tradeshow comes at a time when the world's largest software maker looks toextend beyond its core -- and highly profitable -- PC business intoconsumer electronics and gaming while closing the gap on Internetrivals like Google Inc.

''Microsoft is clearly looking for other areas of growth and otherareas of profit,'' said Gartner analyst David Smith, adding that inpart the company wanted to be able to ''pick up the slack'' if growthdid not continue in its main businesses.

Gates also took the wraps off Windows Home Server, software dueout later this year to provide homes a central location to store music,photos, videos and other digital content. Users will also be able toaccess that content away from home, using a Microsoft Windows Live Webaddress.

In the past, Microsoft's server business has targeted largecorporations or organizations. This represents the first serversoftware aimed at consumers. Microsoft said HP will launch a homeserver product in 2007.

Gates said years of talk and hype about convergence will finallybe realized with its Xbox 360 set-top box for IPTV users. IPTVcarriers, such as AT&T, will be able to offer the new set-top boxin the 2007 holiday season.

''Finally we know what we were talking about,'' he said.

The IPTV Xbox 360 set-top box would allow users to not only playgames, but also grab videos from any PC in the home and display it onthe living room television, download high-definition video, and have anormal TV viewing on par -- if not better -- than cable or satellite.

Reuters>