my keynote address at the 2011 international consumer electronics show
The following post was originally delivered as a keynote speech at the Consumer Electronics Show in Las Vegas on Wednesday, January 5, 2011. 2010 is a very exciting year for our company. We launched Windows Phone 7, Office 2010, and Kinect, as well as Internet Explorer 9 and Office 365. We saw a huge growth in Bing and azure services. Windows 7 has achieved amazing success, and it is indeed the same year as other Windows 7. Therefore, we would like to thank more than 1 billion customers worldwide for their support and feedback. I would also like to have the opportunity to thank all of you here for taking the time out of the webcast today. We appreciate your time and support. The products I mentioned come from our huge technology stakes in cloud, natural UI, new smart client technology, machine learning. At CES tonight, not only do we want to share with you what we have been most concerned about recently, but we also want to share what will happen next. We will show you the impact of some of these technical bets through the lens of three most important consumer devices, Xbox TV, Windows Phone and Windows PC. So, I want to start over. Ten years ago, we took a bold step in changing the direction of entertainment. We started with the Xbox, a smart device powered by magicof software. Xbox ships tens of millions of people to Halo, Gears of War, Call, fable, and many other worlds. The next step on this journey is the launch of Xbox LIVE, which changes the gaming experience. This puts Xbox at the forefront of the social entertainment revolution, connecting millions of people so they can have fun with their friends. But entertainment is not just a game. So we \'ve expanded Xbox LIVE to include music, TV, movies, Facebook, and more. Just over two months ago, we took the biggest step in changing the entertainment of the whole family. We launched kinect for Xbox 360, opening up a vast entertainment world for the entire family. With Kinect, you are the controller. there is nothing better in the world than this. Xbox360, Xbox LIVE, and Kinect make 2010 the biggest year in Xbox history. As we said today, millions of people around the world enjoy their TV, music and movies through Xbox LIVE. There are also millions of people playing blockbusters on Xbox and using kinect to realize the idea that you are a controller. Let\'s take a look at how you control all your entertainment with Kinect and see what happens this year. Ron Forbes, our interactive entertainment business, is welcome to do a little demonstration. Ron Forbes: Thank you very much, Steve. Tonight, I\'m here to show you how Xbox can change the way people enjoy movies, music, TV and sports on Xbox. This is Zune on Xbox LIVE. Zune has plenty of movies, TV and music catalogues that you can enjoy right away in the living room. You can watch 1080 p movies for 5 yuan. Surrounded. No waiting, no downloading. Today, our Zune video market is available in 20 countries. Let me show you the other sites. As you can see here all I have to do is wave and kinect knows I\'m ready to start. Now there are a few things on this menu that I can choose from and I can choose with my hands. But, you know, there\'s nothing easier than just using your voice. What I\'m saying is that both Xbox and Kinectis are listening. So, when I say, suggest some movies. I watched all the special movies this week. So, here I can go through the full screen trailer of the movie I can watch, like Inception. The movie is amazing. I can easily slide my hand and move iton to the next one. All right. \"Mean me\" looks good too. But you know, I kind of wanted to watch the movie with my little nephew. So, let\'s see what else we have. Legend of Twilight and Eclipse. \"You know, I started watching this last night and I can go ahead and say, look at this on Xbox. Now, since I started watching movies last night, I have the option to pick up my resume or restart the video from the start. I would jump back straight and say, Xbox CV. So, you go. I don\'t need to go find a DVD box and put it on my Xbox and I\'m back in my movie viewing experience. This is a very good scene, but if I want to refresh my memory a little, all I have to do is open the playback control, reach out my hand up and go a little to the left, right there. That\'s how easy it is for Xbox 360 to control Zune movies with Kinect. Simple, natural, easy, I don\'t even need to remember where I put the remote. Xbox stop. Let\'s listen to the music. Xbox Zune hub. I can enjoy the controller too- Get more than 11 million songs free of charge in the Zune directory. I just wave again and when I select music I can bring up a song playlist in my queue. All right. We have a little fool. I think it\'s the new \"TronLegacy\" soundtrack. The movie is also good. Like searching for movies, I can slide to the next song. I actually own this music video so it will start playing automatically or I can use my sound. Xbox, next. Okay, let\'s go. Little Janelle Monae, one of my favorite songs. This is a new controller world that millions of people are discovering. Free entertainment you can\'t find anywhere else. That\'s Zune. But those who find the wonders of Kinect and Zune movies and music have been asking how Netflix is doing? When can I choose and browse movies and TV shows with gestures? When can I play, pause, or stop the amovie with my voice? Two years ago, Xbox was the first to bring Netflix to the living room. We continue to innovate. Tonight, I am pleased to announce that we will bring the magic of Kinect to Netflix this spring. Make Xbox the only place to experience movies and TV shows from controller Netflix In the living room, free on the biggest screen in your home, but what about Hulu? We\'re going to announce tonight, too. we\'re going to take control. Free Hulu plus subscription for Xbox LIVE in the United StatesS. Later this spring So you can always use the magic of kinect to watch the full experience of the post-catalog season for HD pop TV shows, like \"30 Rock\" and \"Modern Family \". Controller- Controller-free Zune Free Netflix, controller- Free Hulu Plus is part of our vision to bring partner content and the magic of Kinect directly into the living room. Finally, let\'s talk about sports. For sports fans like me, this is all about ESPN. In November, we established an exclusive partnership with ESPN on Xbox LIVE. I can watch more than 3,500 live broadcasts. Demand sports events from espn3. Great show from ESPN. Best sporting events including college football, college basketball, the NBA and international football including the Premier League. Now, one of my favorite things at this time of year is the college football season. I always watch Bowl matches with my Virginia Tech friends, but since I moved to Seattle three years ago, I \'ve missed watching matches with my team. So, you can imagine how excited I was to be able to watch the Rose Bowl with my friends on the other side of the country on New Year\'s Day. My sister Melanie joined us as well and she cheered for Wisconsin. I am a fan of TCU myself. The competition between me and melanie is very fierce, so there is a lot of junk conversation between us. Go back to the day I need to pick on my PC when I talk about the game viatext message. Now, when we watch the game live, I can make my choice and trash conversation when my team crosses the goal line, not in video games Mail, not in IM, not in SMS, but in the living room on my TV, live sports and social experiences now only happen on XboxLive. So, you might want to know how you can get involved in the action, and it\'s not too late yet. ESPN on Xbox LIVE will play the BCS national championship on Monday against Auburn in Oregon. In the college bowl showdown, you can enhance the national champion viewing experience. You can choose the winner. You can watch the game live with your friends and you can also see how your predictions are accrued. Let\'s take a moment. Let\'s see how the community thinks about who the community thinks will win. It looks very split, about 50/50. You know, most of my friends went to Oregon, but they were wrong. I\'m going with Auburn about this. Now, let\'s look at the leadership committee. All right. My sister Melanie is here. She did a good job. She\'s on it. We can only wait until Monday to see if she can at least maintain it. So, it\'s a college bowl showdown where sports fans on xbox LIVE get their bragging rights. This is just the beginning of our exclusive partnership with sports world leader ESPN. Fans can expect more espn, more games and more new ways to enjoy sports with their friends only on XboxLIVE. So, you have it, all your entertainment, music, movies, TV and sports, all the onXbox LIVE, all the magic of Kinect, it\'s happening now. Thank you for your time. These are incredible entertainment experiences on Xbox LIVE. With the great new features on Netflix, Hulu, and ESPN, we will provide more interactive, social, and fun entertainment for everyone. We will do what others can\'t. So everyone who likes Kinect knows that today is listening to you and following your body, but what about your facial expressions? As you can see, Kinect can now track features like your smile, your laughter, and even your eyebrows up. Maybe I\'m the only one, but I think the head is bald. Face Recognition, body tracking, and even facial expressions come to your living room. I am pleased to announce that this spring\'s Avatar Kinect will be available to all Xbox liveold members for free. So, you have it and the Xbox and Kinect changed the living room with the controller -- Free entertainment in a way no one can imagine. Consumers around the world are reacting. The Xbox LIVE community continues every day, reaching a new milestone today for 30 million Xbox LIVE members. In fact, a new member joins Xbox LIVE every two seconds. In addition, Kinect and Xbox LIVE are driving consumer demand for the Xbox itself. Xbox 360 has always been number one. In the past six months in the United States, there has been a sales console every month. Xbox 360 has sold more than 50 million units worldwide. As many of you know, we predict that by the end of the holiday we will be selling about 5 million Kinect sensors. We exceeded that forecast. In the first 60 days, we sold more than 8 million kinect sensors worldwide. This is the biggest festival and the biggest year ever for Xbox. On 2011, you will continue to see more fun, more entertainment and more innovation from our Xbox team. Xbox is where no gaming system has been today. Your Xbox is becoming the center of your living room. It\'s your game system, but it\'s your movie, it\'s your TV experience, it\'s a TV show, it\'s your sporting event. Your social interaction is directly transmitted to the largest screen in the home. The smaller screen in your life, your phone, is another place where you will see more entertainment. People take advantage of Xbox LIVE on Windows Phone 7, achievements, player scores, your avatar. Windows Phone 7 is the only Phone that offers all the features. Xbox LIVE is on the go. We have an incredible game for everyone, from casual gamers to our heavy batsman game franchise, all on the phone. You \'ve seen popular products like hit or Halo country on Windows Phone 7. Today, I am pleased to announce the coming fable for Windows Phone 7. Fable/CoinGolf is a brand new game designed for Windows Phone 7. Since everything is connected via Xbox LIVE, when you play on Xbox 360, all the goals you get in fable/coin golf will point directly to your Fable 3 We need to combine this. It\'s exciting to see how many games are on the phone, especially when we just launched two months ago. Windows Phone 7 is very different from other phones. We treat this opportunity with a very fresh and unique perspective. We asked a few basic questions. First, can we help simplify the task of using mobile phones most often. Second, if more apps are released, if the phone can do more than ever, can we still make them easy to use? In my opinion, this phone is different from others. it is a mobile phone designed for modern smartphone users. By redesigning the basic way that mobile phones present and organize information, we make it easier and faster for people to do things like shoot and share photos, keep in touch with friends, family, and those who are most important to us personally, and quickly figure out where you are going to do next. We bring together the best of Office, Windows Live, Xbox, Bing, Facebook and more to focus on building a good phone and offer this new approach. Great response to the product. We have launched 9 mobile phones in 60 mobile operators in 30 countries. It was a very big launch. Our hardware partners and software partners are offering all the apps that extend the Windows phone experience to the categories that people value most: gaming, social networking, entertainment, and productivity. In the past few weeks alone, we \'ve added great new games like Kindle, Bank of America app, first ninja game. Today, Windows Phone customers have more than 5,500 applications available. In some cases, our customers usually have access to more than 100 new applications every 24 hours. More than half of our customers download a new app every day. More than 20,000 developers sign up with us and have more logins every day to keep the app pipeline intact. No work, however. Show people the new phone. We found that people will fall in love with mobile phones once they see them. Windows Phone users tell us that\'s what they do. The result is a high enthusiasm for the product. 9 out of every 10 Windows Phone customers At & t told us that they would recommend this product, the Phone, to others. We are proud of what our customers think about Windows Phone 7 and we will continue to invest in the future. Over the next few months we will be releasing a series of updates that will be automatically pushed to our customers and we will drive several improvements. For Windows Phone users, the most striking thing is to add copy and paste, as well as significant performance improvements when loading or switching between applications. In addition, we will complete the release of Windows Phone on theSprint and Verizon network in the first half of 2011. Continuing with the first job, I would like to ask everyone to take a look at this phone and to do it for us today, please welcome Liz Sloan, the stage of the Windows phone team. Thank you, Steve. Hello everyone. In addition to being a loyal Microsoft employee, I am an avid runner and chief shepherd of two rowdy children. If your life is the same as mine, it\'s a little busy. I was invited here today to show you seven things about windows sphone 7, which is great for all of us. First is the camera. How many times does this happen to you: you see something interesting happening, you reach out to get your phone, and when it comes, you will really lock it up to take a picture and disappear completely in an instant. We are not satisfied with the situation. So, we started to build aphone where you didn\'t spend it at the moment. For every Windows Phone 7 we have separate camera buttons and the best part is that this camera button works even if your screen is locked. Something interesting happens in this case, like I\'m on stage with all of you and what allI needs to do is hold the camera down and take pictures, I can share this photo with my friends and family right away, or I can upload it to Facebook and other social networking sites. Though, it\'s hard for me to tag all of you in this case. In a few seconds, pocket-to-picture posts everything. No. 2. go at a glance. One of the things we do on Windows Phone is to help you do the best of everything you care about so you don\'t have to look around for that information. We do this with lock screen. On the lock screen you can see your time, date, next appointment. You can see the wrong phone. Mail and text messages. We also do this on our start screen. Our Start screen is completely different from anything on the market today. This is not a list of icons, nor is it a sea of apps. We have what we call living tiles. As their name suggests, these tilesare are alive and they change. So, when my friends update their Facebook status and send out new images, I can see this on my Live Tile. I can also see the weather in the city of my choice. I can also see if they have a mission-critical information app like this, five and a half months until the summer solstice starts. When you are a Hawaiian living in Seattle, you count every day until summer comes. We will also put some simple things like your alarm clock. Is it on or off, when, and things like your calendar and your next appointment. In this case, when I finish tonight with all of you, I\'m going out for a big team dinner that I should have planned, which makes me understand the first point. 3. voice search. In this case, I should plan dinner as I have no chance so I will do it on stage with all of you. Later tonight I would like to choose a truly elegant restaurant to bring the team. Burger in and out Yes, for all of us from San Diego, we will have animals. Burger tonight. So, I got all the results online related to getting in and out of the burger. I also bought all the burgers in and out of the area. I can find my exact location and it will bring all the burgers in and out. In this case, I will go to the one on Dean Martin Avenue. I got the phone number, direction and time. I can also read the reviews and have a lot of great reviews for getting in and out of the burger. Then I can also find a nearby location. So once we \'ve finished a couple of burgers, if we want to run in the lion\'s habitat or go to Starbucks for a coffee, it\'s probably what we\'re really going to do, and we all have locations nearby. When it comes to mobile phones, every Windows phone has a dedicated search button, which reminds me of the first point. 4. We got Bing. Not only can you see the same great pictures and their descriptions, but you can also get instant answers. So, in this case, I\'m curious about the Miami Heat\'s performance against the Bucks last night. I played it again in Miami Heat and the highest Bam got the score instead of a lot of blue links which got me the answer and I got the score I wanted. I can do this for stocks, sports scores, weather, flight information, etc. In addition to making the search simple, we also try to organize what you care about, and a way that you can really understand, which makes me understand the first point. 5, hubs. On other phones, your information, such as games, apps and music, is a bit messy and lives in different silos. On our phones, we have what we call the center. An example of this is Office hub. I can do all kinds of things in my office center. I can work with my colleagues on documents and publish them to SharePoint. I can do a little financial modeling in Excel, or I can save all my notes in OneNote. I am a big OneNote user and one thing I like about OneNote is that myOneNote syncs on my phone, computer and network. In this case, I kept a birthday idea for my husband. Best of all, I can fix this OneNote on my start screen so I have ideas all day -- Click to access this onenote. Let me open OneNote and see some of my thoughts. After Ron\'s demo, I think he has convinced me that he needs a new Xbox for his birthday. So now that I\'m behind, what I\'m going to do is I\'m going to copy this on stage with all of you, and I\'m going to go to one of my favorite shopping apps, and do a little research on this Xbox. As Steve mentioned, we have more than 5,500 new apps on the market, which makes me understand the first 6. our amazing apps, big name apps like Bank of America, Travelocity, Fandango, and Amazon in this case. com. If you remember a few seconds ago, I copied the Xbox I was interested in. I will paste it in because it is a bit long and then I will search and I will look for the results. The result came out soon and I could buy it on stage if I wanted. But I will not waste your time and I will take you to the first point. 7. in the next few months, many new hot games will appear on our mobile phones. We have solved it for you if you need speed. If you like some retro games, we will provide you with Pac-Man. If you are a secret ninja like me, like to get lucky to get seventh Xbox LIVE on the phone. As you can see a few minutes ago, we have some poor innocent pineapple and kiwi fruit on our side and we have Fruit Ninja for you. Best of all, with our upcoming updates, our activities will load faster. With the 3D graphics on this phone, you will feel that they are on your lap. If you haven\'t played this game, it will be very addictive. All right. It was a big breakthrough in 7 minutes. If you don\'t know, I\'m excited about this phone. I hope every one of you will have a chance to go out and try it. We strive to bring things that you care about together in a simpler and faster way so that you can go out and enjoy your life. Thank you. The feedback I heard was very, very satisfying when I had the opportunity to show people Windows Phone. People tell me how trendy it is, how convenient it is to use, and how private it feels. Perhaps equally important is how beautiful it really looks. Before we finish, I want Mike to say one more product, which is Windows PC. We made some announcements earlier today and I want to take some time to put them in context for all of you. A year ago, at CES, we talked about how excited we were about our customers\' early reactions to Windows 7. We just launched and all the indications are that we have delivered the product to our customers. It turned out to be true. Windows 7 computers are the fastest-selling computers in history, selling more than 7 copies per second, and now account for more than 20% of all computers connected to the Internet. Windows 7 PC is the best way and place to experience modern Web, and Internet Explorer 9 represents a leap for developers to use HTML5 and excellent hardware, including hardware-accelerated breakthroughs for graphics cards. There are already 20 million people using IE9 beta today. We have released a new version of windows Live to more than 0. 5 billion people around the world. It includes a WindowsLive photo gallery that allows you to sync and organize images from all devices and easily share them with friends on SkyDrive, Hotmail, Facebook, etc. And Hotmail, this is the first. 1 e- Mail services around the world, deep integration of Microsoft Office, a step forward. In the first 100 days, we drove more than 20 million people using the ourOffice Web app via Hotmail. Finally, all The new Windows Live messengerconnect is easy to connect to Facebook and is already number one 2 apps on Facebook. A year ago, our partners just started using Windows 7 computers. This year\'s CES has more innovative PC hardware design and machines than ever before, and hardware brings a complete Windows experience to life, including modern networking, rich media experience and comprehensive More and more customers are beginning to expect the PC to perform its full functions in a variety of form factors. We are pleased to see our partners continue to bring great and innovative new hardware to the market. I would like to invite Mike Angiulo of our windows steam to come on stage and show you some exciting, interesting, innovative, productive work that you can see with a very beautiful new Windows 7 computer. Mike: Hi. This is Mike Angiulo. There are a few things to show you tonight. I\'ll start with some of the work our partners have done on windows 7, show you the new version of the Surface, and then have a little bit of knowledge about the next tech preview. So, here are some new Windows 7 PCs, and I\'m going to go through each one and tell you what cool places they have. The first is about the new release of Intel. They just announced their new generation, their second-generation Core processor. Code-named SandyBridge. What Intel does is combine multi-core CPUs and GPUs on one chip, which improves your graphics performance while reducing power consumption. PC World says the laptop has 20 times the graphics performance of the previous generation cpu, and HP will install a new core i7 on the laptop, and expect six and a half hours of battery life in the standard six hours. Impressive battery. But I\'m going to show you the show. This is the Galaxy Audio demo, which is an application written in HTML. This is Internet Explorer 9, the only browser that really leverages the underlying PC to accelerate the web browsing experience graphically using the GPU. What you see is an animated solar system made of a 2D image of a GPU-globalised planet. Computing is very intensive. As you can see, I get 36, almost 40 frames per second on a mobile PC. It was completely impossible a year ago. This is another example. The computer is using AMD\'s new processor. They just announced it. Called Fusion. This is a multi-core CPU, a discrete quality DX11 level GPU, a North Bridge, all on one chip. They call it an accelerated processing unit or the APU, which allows you to have a very high performance PCin in a very small form factor, with a very long battery life. In fact, HP simply replaced the processor and almost doubled the battery life of the thin and thin system to 9 hours. I have started the IE9 test drive website. This IE website has become a popular way for people to display hardware to speed up Web browsing. I can increase the fish in this tank to 250 and get more than 40 frames per second. We\'re talking about a PC that costs less than $500 and it\'s thin and light. So this performance of the ultra-portable laptop is really brand new and impressive. While processors continue to become more robust and efficient, our partners continue to invent very cool, new modern shapes for PCs. This is an example from Acer. this is a double. screen PC. You see, I have two- Inch touch screen hereI can --is that cool? Do you like that? It also looks cool from here. The neat thing is that not only do you have a lot of browsing space, I can also take 10 fingers, put down 10 fingers on the screen and immediately get a built-in software keyboard --in. Go ahead, let it come out. So, I can post the message here. I have a track pad. I can do productivity scenarios. Here, hardware and software are integrated in a very cool form. This is an example of an engineering prototype for the upcoming PC. This is Samsung PC7 sliding series. You can see that I can slide it down and touch the screen and then I have a PC that is perfect for entertainment. What is really neat about this computer is what it has. It has a Micro SD card and it has micro hdmi and USB. It has everything you want on PC. It\'s really light, about a kilo. But what\'s really cool is what\'s missing. This is an Intel Oak Trail. based PC. It hasno fan. It is very light, it is passively cooled, and you can switch between these two shape factors immediately. This new tablet- You like that too? I think it\'s cool. It will take me a little time to really explain this. This is the new tablet fromASUS, this is a complete one Power for Windows PC. So, there\'s a Core i5 processor in this computer. This is a wireless keyboard. It provides a great productivity workstation for small places like on a plane or on a student\'s desk. You can see that it has a good response to Windows Touch because it has a positive Touch screen. But because it is a tablet, I can also take out the pen and use ink. What Ink asked me to do is like what I highlighted in Excel. I can pick up the pen and say, \"This is great. \"I can take the eraser. I can wipe it. One cool thing about ink and tablets is that the tablet has handwriting recognition in 26 languages and you can see: When I put the pen on the screen, can you see that my hand is not moving the spreadsheet? This is one of the reasons why it\'s hard to use ink on touch Only the device, why the tablet is so good for ink, because it implements palm rejection here. It actually knows what my hand is and what the pen is and doesn\'t confuse the two. Here\'s a touch- Only the game I can launch, you can see the character behind me on the screen. But what I want to show you is the screen itself. The screen is really bright. What we do to Asus is that we work with them to make sure this screen is off Almost 180 degrees of wheelbase viewing. So, when I move it around on the camera, you can see that the screen is very bright from almost any angle and the color will not change. We do this by working together in a process to make optical bonding of all the components of the screen. Thus, the Gorilla Glass on the surface, the underlying LCD, the touch sensor, and even the magnetic digitizer of the ink are combined as a unit. This process eliminates the air gap that is usually under the screen, so the screen is not only brighter, but also uses 20% of the power to get the same brightness. You can order these computers from now on. The page has just been launched on Amazon. Com in Microsoft Store I think they will be very popular. But if you want to see an example of a real extreme integration on Windows 7, you have to look at the brand -- New version of Microsoft Surface. Microsoft announced today that it is a brandnew version. If you remember the first version, you will notice some very obvious differences with the first version of SurfacePC. We worked hand-in- Working with Samsung throughout the terminalto- I will show you my final experience. The first thing you notice is that the PC is thin. It is no longer a big box with a camera. This is only 4 inch thin. There\'s a complete one here. Computer power for Windows 7. It\'sgot a dual- Core CPU and amd gpu. Most importantly, this is the largest piece of gorillaglass ever combined with LCD. But what\'s really amazing about this technology is the sensor itself, and what really makes it amazing is the sensor itself. So, first of all A new generation of Surface PCs needs to be able to look up and see what\'s going on. But we have something here called pixelsense. PixelSense is a new technology we have invented with infrared sensors on the screen. Every pixel actually acts as a camera. The surface of the computer here is actually visible. So, I raise a piece of paper that says \"I can see\" and when I put it down, what you see on this debug monitor, what you can see on this split screen above, the pc can actually see that piece of paper. So this is not even accessible. PixelSense is not just visual, it\'s actually internal processing, getting data, and allowing developers to write cool apps on data. One of the really cool things about this new, thinner form factor is that it\'s no longer just a table. You can also use Surface as a kiosk. I want to talk about Royal Bank of Canada. This is one of the partners we will release these Surface PCs publicly. These are durable computers. This thing is designed for industrial commercial applications. In fact, if you go through the street to the Hard Rock Cafe, you can see some surfaces of a generation in the bar. They can drop the beer bottle from 18 to the screen without breaking, and even the liquid will flow out normally. But don\'t tell them I told you to go. Here is an example of an application in a bank. Royal Bank of Canada has sent these leaflets to thousands of potential customers. When they bring the flyer to the bank, they show it to the screen and the Surface recognizes the flyer. It can see the flyer and type you into the drawing to see if you won. This is the power of PixelSense technology: Vision Based on interaction, developers can write a new category of applications. In this case, you can see that I won, which always happens in my demo. When I close the process, I can interact with some of the other apps that the bank may have to show, which are some of the products and services they provide to their customers. So, here\'s an example of how their savings products work. So, I save $5 a day and I get a more realistic rate and save 20 years to see how it accumulates. So with the new lower price, smaller size, more versatile form factor, I think you will see the Surface PC in a lot of cool places in the next year or two. So, Steve, if you want to come back, you can see what 20 fingers look like on the screen at the same time. I like this. This part is cool. Only imagination limits what Windows computers can do today: write on it, draw on it, hang on the wall, touch them, use a wireless keyboard, play games, and more. All Windows computers Mike has the opportunity to show you will be available in the new few months. I can\'t tell you how excited I am as a user about some of the things that Windows 7 PCs offer. They are leading the way in the new equipment that offers it all, with no compromise. Earlier today, we discussed the next version of Windows for the first time. We announced that the next version of Windows will support the system-on-a- Chip Architectures for Intel, AMD and ARM. The announcement was actually to facilitate a new class of hardware, Windows\'s new silicon partner, bringing the widest possible form factor to the market. In order for all of our partners to work together and build on this innovation, we have now announced this decision. Windows has always been in the breadth of hardware and software applications and innovation, and will continue to do so. We are very excited about the full set of partners for the next version of Windows. NVIDIA, Qualcomm and Texas Instruments are working on SoC design based on ARM architecture. Intel and AMD will continue to innovate on X86 platforms, including the new low- The power SoC system that Windows will fully support will include support for native X86 applications. Windows support for SoC is an important step for Microsoft and the industry. More and more customers expect a full range of features from any device: the functionality and breadth of software available for today\'s laptops, long battery life and always- In addition to the basics, printing and support for all hardware devices and peripherals, the features of the phone, excellent browsing, productivity and media experience. With breadth and depth and flexibility, Windows can define and deliver next-generation devices to customers through partner innovations. Mike had a chance to show you something that was shipped right away earlier, but what I hope he\'s showing you now is some of the work we did earlier today with a preview of Windows\'s support for on-chip systems. Welcome back to Mike. Mike angiulo: So, we announced the system earlier todayon- The next major version of the chip architecture of Windows, we are doing a technical preview. So, while everything here today is based on Windows 7 and will come soon, what I\'m showing you here is platform support for the next major version of Windows. Now we don\'t show the new Windows user interface or any new Windows features. Today, all this is about platform support so that partners can start working together to develop new designs. I will start with the Intel system. what you see here is Intel\'s low- Power Atom SoC system. Now, before I start, I want to explain what happened to us here. This is a development board that we use to do pre-production software and pre-production hardware together. Below this radiator is the actual chip. The SoC is about that big, and when we actually ship it, the whole chip fits into such a big motherboard. So, this is the entire motherboard of the PC, with memory, slots and everything. The PC doesn\'t need to be bigger than this, and there are batteries and screens that can be of any size. What we\'re doing here is an example of what it looks like when we do the development. Now, this is a future version of Windows. We\'re at a low Intel\'s power Atom Architecture. What\'s cool about this? - Current user interface. This is all about supporting basic chiplevel types at the kernel level if you want. What makes Intel platform really interesting is compatibility with all existing software and hardware applications currently running on Windows. So, what I\'m showing you here is the Quicken version I just got from the store, removed from the shelf, installed it, it works fine, no modifications. The same is true when I plug in this Windows 7 phone. You can insert the camera, printer; Anything that works on Windows can be out of the box here. So, very high compatibility, you can see that it recognizes the phone and it will start syncing. There it connects the device and identifies it. So, all of this is working today, which is a big advantage of Intel\'s system. We also announced today our partnership with three other partners. I will show you the Windows, the real Windows client running onARM. This is Snapdragon, Qualcomm\'s ARM system. This is the window on ARM. I can open the command prompt and show you the version string of the person who keeps track of this kind of thing, just to show that it is real. I have desktop DingTalk and I have accessories to post. You can see I can open my photo gallery I have custom. I can change my desktop background. What I\'m showing you here is the Windows desktop running on ARMsystem. This is really the first time. This is not virtualization, this is Windows running on ARM. We\'re also working with Texas Instruments. This is calledOMAP, their ARM platform. What I\'m going to show here is an example of how hardware and software applications work. So, I\'m going to start Word and paste it in some text and click print. What I\'m doing there is actually starting Word. This is the word running on ARM. So, this is a build of Word and we recompile it as a native ARM app and then you sawit launch and you see I pasted some text. The thing under me is-the- Epson shelf printer. It\'s a USB printer. What we did to them was stack the print driver up and running locally on ARM and you\'ll be able to see it print out in a moment. Thank you. It\'s real office work, it\'s real print driver work, and the print driver is just one of the subsystems we start and run. We can connect to cameras and storage devices and other cool things like that. Now, the third ARM system I want to show you is from NVIDIA, which is known for its very high performance. Performance Graphics, also on their ARM system. This is their Tegra platform. What I\'m going to post here is PowerPoint. So, I have another Office app that is starting up and it will start up quickly and you can see that I can enter \"Windows on ARM\" here \". \"I can create new slides quickly, and it\'s very fast in performance. This is because PowerPoint is one of the office applications that take advantage of hardware acceleration, so you can get a smooth transition between slides and plain slides. It runs very fast because of the acceleration of its hardware on the Tegra platform. I can also show you another application that uses hardware acceleration, the next version of IE. Here is Internet Explorer with HTML5 demo. So, you can see how the images are smooth and responsive. You can see how fast it reacts to the mouse. This is all because graphics are processed on GPUs on ARM chips. Acting is really important, especially something like video. So, I\'m going to launch the Iron Man trailer, which I\'m going to launch in HD. This is full HD output. What you will see is smooth and fast. playing video. It will not drop the frame, nor will it stutter. This is true --performance. The unit actually even has HDMI output, although it is not connected in this demo. I can jump to a different picture in the movie to see how fast it can catch up and play fast and play smoothly. So, what you see here today is Windows, real Windows running Office, devices, high-performance browsing, high-performance video, all of which are running on the next generation SoC. This is an exciting moment for our industry and consumers. Through the magic of software, we have the opportunity to come up with Windows and redefine what is really possible. That is the Power announced today. No matter what device you use now or in the future, Windows will be there. We have talked a lot tonight. 2010 is an incredible year with over a billion consumers experiencing Xbox, Windows Phone, Windows pc and more. Xbox has been transformed from a simple gaming device. It has become the place for your favorite TV shows, playlists and social networks. Kinect brings games and entertainment to a new barrier-free environment for everyone. Windows Phone 7 is the best new Phone. When people try it and discover its new features and beautiful hardware, they see the difference. They see how, from gaming to social networking to productivity, it can do better than any other phone. Today\'s Windows 7 PCs can be found in many wonderful shapes, from new tablets and convertibles to high-end PCsEnd the game platform. Windows computers will continue to adapt and develop. System support-on-a- The chip means that Windows will be everywhere on a variety of devices and will not compromise; All the performance and flexibility of Windows on low-power, long-Long lasting equipment. We are entering a new era of technology for consumers, from small screen to large screen, you can use windows anywhere. It has games, TV, movies, music, productivity, social networks that consumers are pursuing today. Thank you very much for your time tonight. I would like to wish you a happy new year and a wonderful CES. This is my pleasure.