Gates Puts Windows at Heart of Digital Home

LAS VEGAS -- Microsoft Chair and Chief Software Architect Bill Gates previewed new technologies for Windows XP on Monday evening that transform the humble PC into a kind of digital control center, allowing users to access their applications and digital content wirelessly from computer screens and other devices anywhere around the home or office.

Taken together, the technologies are part of a familiar vision that the Microsoft executive has hawked here at the Consumer Electronics Show in previous years. The company is betting that consumers want anytime, anywhere access to their digital files and applications--and that they'll trust Microsoft's software to do it.

The new software includes Mira, a set of wireless technologies that enable users to unplug a flat-panel display from their desktop PC and carry it around with them, retaining access to all of the applications and digital content on the PC. The wireless connection is based on the 802.11 wireless standard, and users can interact with the PC through the touch-sensitive display as if they were sitting at the PC.

Hardware Help

Hardware partners such as ViewSonic are expected to release flat-screen terminals enabled with the Mira technology by the end of the year, Microsoft officials here say. The technology could also be embedded in simple screens around the home that could display digital videos or pictures, Gates said.

"What we mean when we talk about integrated computing is that as you move from device to device, your information is there for you," Gates said, addressing a crowded hall on the eve of this year's annual CES event.

The other new technology, dubbed Freestyle, turns the Windows XP interface into a control panel that can be operated using a remote control-like gadget. Large icons on the screen allow a user to operate the computer from a distance, starting music or a video clips that could be played on the PC or another computer screen in the home. The Freestyle interface should also be available in the next 12 months, Gates said.

Smarter Cell Phones

Microsoft's ambitions don't stop in the home. Gates announced that the company's software for smart cellular phones, dubbed Stinger, has been renamed Smart Phone 2002. The software will power devices that blend the functionality of a personal digital assistant and a phone, he said, showing future products from Samsung and Cyberlink.

The developments are made possible by dramatic improvements in the power of computer chips, combined with declining hardware costs, he said. Software has a vital role to play, he said, providing the glue that will allow smart devices to talk to each other and share information.

Key to this new environment will be wireless technology, he said. "The explosive way that these devices work together will overwhelmingly be wireless, and the standards around Wi-Fi, or so-called 802.11," he said.

More Secure

Building such a world will mean building trust among consumers that Microsoft's software is secure and reliable enough to manage it all, he said. Well-publicized security problems with Microsoft's software mean the company may face an uphill battle to win that confidence.

"This trustworthiness will have to be an element of all the different devices--that's a substantial challenge, but it's a challenge we can meet," he said.

One analyst says the Mira concept is a good one, because it will allow users to roam about their home or office and still have complete access to their PC. However, one stumbling block is likely to be price, which could limit the use of the technology to early adopters, says Tim Bajarin, president of research company Creative Strategies.

Mira depends on the use of relatively expensive flat-panel displays, and it would be hard to sell one for less than $500 and still make a profit, Bajarin says. Corporate users may find the technology appealing, however, and might be willing to pay for the mobility.

"I could see the usefulness in certain corporate environments; if you were to go down the hall to a conference room and give a presentation, you could imagine it might be useful to have access to an extension of your PC," he says.

Apple Takes a Bite

The concept described by Gates on Monday is similar to the one put forward by Apple Computer Chief Executive Officer Steve Jobs at the Macworld conference in San Francisco on Monday morning, in which the personal computer acts as the hub of a universe of digital devices such as music players, cameras, and handheld computers.

Microsoft's plan is more ambitious, however, seeing a role for its software in virtually every electrical appliance in the home. The company's plans are based on two operating system products, Windows CE and Windows XP, and complemented with its Windows Media technologies.

"Those are the software products we adapt to every one of these intelligent devices to make sure we can deliver the intelligent experience," Gates said.

The Microsoft chief also unveiled the next version of Windows CE, dubbed Windows CE.Net after Microsoft's .Net software-as-a-service initiative. The operating system, designed for handheld computers, set-top boxes, and other gadgets, incorporates the .Net Compact Framework, a software platform for developing so-called Web services.

He hosted a demonstration of one service that could be offered with Ultimate TV, Microsoft's interactive TV software based on Windows CE. A Microsoft representative showed how a user could access his Ultimate TV set-top box remotely using a smart phone and instruct the service to record a football game on television.

Playing Games

Gates also bragged of strong sales for the Xbox game console, saying the company has shipped 1.5 million boxes since its release shortly before the holiday shopping season, and an average of three games per customer.

The cost of manufacturing the boxes means Microsoft is likely selling them at a loss, says Richard Doherty, a director with the research company Envisioneering Group in Seaford, New York, but he calls the figures impressive nonetheless.

"I think even cynics are surprised by the number of Xboxes shipped," Doherty says.

This year will see the launch of Microsoft's Xbox online service, allowing gamers in different locations to beat each other up other over the Web, Gates said. A video to demonstrate how the service might someday look showed gamers battling over the Internet and goading each other through a voice synthesizer that lets them mimic the voices of characters in the game.

Gates said he spent the holidays being thrashed on the Xbox by his nephews and nieces.

"When I started Microsoft 27 years ago, I had no idea I would create the ultimate machine to humiliate myself," he said.

CES, in Las Vegas, runs through Friday.

• See more like this:
• Bill Gates,
• Microsoft,
• Windows XP,
• wireless,
• network,
• home,
• digital,
• office,
• connected,
• Windows CE,
• PC,
• CES