| Highlights of Bill Gates keynote at CES 2005 |
Jan. 05, 2005
 In his keynote address tonight at the Consumer Electronics Show, Microsoft chairman and chief software architect Bill Gates outlined his vision for the "digital lifestyle," and demonstrated a broad range of innovations that will enhance the lives of millions of people worldwide, according to a Microsoft statement.
Underscoring the importance of choice and flexibility in bringing the digital lifestyle into the mainstream, Gates showcased innovations in digital music, photos, television and movies, gaming, and communications, and showed how Microsoft and its partners are leading the industry in bringing to life the experiences consumers want, the statement said.
"We are at the forefront in making broad technology investments and delivering breakthroughs that bring the digital lifestyle into the mainstream," Gates said. "Our strategy is to deliver great software and a platform for partner innovation, so consumers can choose from a vast array of devices and services that work together seamlessly and suit the way they live."
Gates unveiled a number of alliances intended to make consumers' digital experiences richer and more personal. Among his announcements were: - An agreement with MTV Networks (MTVN) that will create new ways for consumers to access MTV content through a variety of digital entertainment products. As part of this agreement, MTV intends to launch a new PlaysForSure-compliant MTVN digital music service with portable subscription capabilities.
- New digital music and video devices that expand Microsoft's PlaysForSure logo program to more than 50 currently verified devices and seven online services, ranging from small, low-cost, flash-based players to full-featured hard-disk-based units and forthcoming network-connected high-definition televisions (HDTVs) and DVD players. Gates also announced that 90 million copies of Windows Media Player 10 have been downloaded since its launch in October.
- Continued momentum around interactive entertainment, with Media Center PC sales doubling year over year, surpassing 1.4 million units globally and growing by 40 percent in just three months
- An agreement with BellSouth Corp. to test next-generation TV services using Microsoft TV IPTV Edition
- Strong momentum for the Xbox system, with industry-leading sales for the 2004 holiday season, and expected sales of more than 20 million consoles by July 2005. The "Halo 2" game generated $125 million in revenue in its first weekend of availability, surpassing the biggest opening weekend in box-office history, for "Spiderman," which generated just under $115 million.
- A new collaboration with TiVo Inc. that will enable TiVo subscribers to easily transfer their recorded TV content from a standalone TiVo Series 2 standalone digital video recorder to their Windows XP-based and Media Center PCs, Windows Mobile-based Portable Media Centers, Pocket PCs, or Smartphones using new TiVoToGo software.
The keynote featured a string of interesting announcements and demonstrations: - Nikon D2X digital camera -- Gates demonstrated a Nikon D2X digital camera with integrated 802.11 wireless networking capabilities, and two devices that use Windows Media Connect to extend the reach of digital content: a new connected HDTV from Digitrex for access to digital media in the home; and a DVD player-recorder and digital video recorder (DVR) from LG Electronics that can access music, photos, and video from Windows XP based PCs.
- PlaysForSure -- Gates highlighted Microsoft's PlaysForSure logo program, through which more than 50 devices -- ranging from small, low-cost, flash-based players to full-featured, hard-disk-based units, network-connected HDTVs, and DVD players -- have been verified. The PlaysForSure logo program eliminates the complexity and uncertainty from digital media, by ensuring that devices can play the digital audio and video consumers want, according to Microsoft.
- Windows Media Player 10 downloads -- Gates said that consumers have downloaded 90 million copies of Windows Media Player 10 -- the equivalent of eight downloads per second since its launch in October, according to Microsoft.
- Seamless data transfer -- Gates demonstrated the ability of the Windows platform to enable "seamless experiences." Unveiling Nikon's new D2X digital camera, photos taken on the camera were wirelessly transferred to a Windows XP Media Center Edition 2005 based PC, and then to a Windows Mobile based Smartphone.
- New Media Center PCs -- Noting the increased convergence of PC and TV technologies, Gates unveiled new Windows XP Media Center Edition 2005 based PCs from Alienware, HP, Niveus Media, Stack 9 Systems, and Ricavision International.
- Windows CE based DVD recorder and DVR -- Gates announced a new DVD recorder and DVR (digital video recorder) under development by LG Electronics, based on Windows CE, that will enable consumers to record and burn DVDs of their favorite shows and share content with their Windows XP and Windows XP Media Center Edition based PCs.
- Universal remote controls -- Gates demonstrated advanced universal remote controls from Royal Philips Electronics, Niveus, and Logitech International SA that control Media Center PCs as well as consumers' existing home theater equipment.
- Network-connected television -- Gates demonstrated the first network-connected television designed to support playback of music and video from online stores with the PlaysForSure logo. The new 46-inch LCD HDTV from Digitrex uses Windows Media Connect and Windows Media Digital Rights Management 10 to stream digital photos and personal media from any Windows XP based PC, as well as download and subscription music and video from PlaysForSure online stores. Gates noted that this new type of TV design is also being evaluated by Pioneer for its HD plasma displays, and said that these kinds of innovations are creating new opportunities for consumer electronics companies and extending the reach and choice of digital media for consumers.
"Tremendous potential" of IPTV
Gates then focused on the "tremendous potential" of IPTV (Internet protocol-based TV) services, and noted how Microsoft TV IPTV Edition software can provide a platform for network operators worldwide to deliver next-generation pay-TV services. The software is intended to provide a video platform that enables operators to offer integrated video, voice, data, and mobile services that are not available on today's TV distribution platforms.
Continuing on the theme of IPTV, Gates announced that BellSouth has joined a growing list of customers -- including SBC Communications, Bell Canada, and several leading telecommunications operators worldwide -- that will field-test IPTV services powered by Microsoft TV software.
Lea Ann Champion, executive vice president, SBC IP Operations & Services -- which recently announced an agreement with Microsoft, valued at more than $400 million over 10 years, to license and deploy Microsoft TV IPTV Edition to millions of its subscribers -- then demonstrated some of the features of Microsoft's IPTV software, including HD programming, DVR features, video on demand, and multiple picture-in-picture capabilities.
Expanding range of audio and video content
Next, Gates made a number of announcements intended to demonstrate that the tremendous growth in devices has been matched by an expanding range of audio and video content: - TiVoToGo -- Gates highlighted a new collaboration between Microsoft and TiVo that is intended to enable customers using a TiVo Series 2 standalone digital video recorder and new TiVoToGo software to easily transfer recorded TV content to their Windows XP based PCs. TiVo expects that within 60 days, consumers also will be able to transfer the same content from the PC to Windows Mobile devices, including Portable Media Centers, Smartphones, and Pocket PCs. TiVo announced that it expects its standalone TiVo Series 2 subscribers to have access to the software within 60 days.
- MTV agreement -- Gates then announced a groundbreaking agreement with MTV Networks to collaborate on long-term digital media initiatives that are intended to create new ways for consumers to access content -- including from MTV, VH1, CMT, and Comedy Central -- through a variety of digital entertainment products and scenarios. As part of the agreement, MTV will target its content offerings to Media Center PCs and Portable Media Centers, and intends to launch a new PlaysForSure-compliant MTVN digital music service with portable subscription capabilities, available in the Windows Media 10 Digital Media Mall.
- MSN Video Downloads -- Gates then highlighted the new MSN Video Downloads service, which provides a single source for sports, news, and entertainment content for Portable Media Centers and other Windows Mobile based devices, including daily video downloads from a wide range of leading content providers including MSNBC, CNBC, FOX Sports, HGTV, Cookie Jar Entertainment, and IFILM Corp. MSN Video Downloads has launched a preview of the service offering both free and premium memberships, and the site is expected to launch in final form within a few months.
- Xbox -- Gates said there was continued momentum around Xbox and the Xbox Live service, and announced "industry-leading sales" of the Xbox console for the critical 2004 holiday season in the US (Xbox garnered 40 percent market share for the months of November and December). Gates outlined three major trends driving the gaming phenomenon today: HDTV, ubiquitous broadband and wireless connectivity, and rich personalization. To demonstrate the latter, he joined in a game of "Forza Motorsport," an auto racing game from Microsoft Game Studios scheduled to launch in April 2005.
Communications and mobility
Gates noted that Microsoft Windows Mobile based Smartphones are now available from 61 mobile operators in 28 countries, and that 37 partners are shipping more than 25 Windows Mobile based phone designs.
Gates demonstrated the ability of the Windows Mobile-based Audiovox SMT5600 Smartphone to synchronize audio and video content using Windows Media Player 10, enabling users to play audio from subscription services and access video content from their PC. He also announced that Microsoft, Cingular Wireless, and Garmin International will deliver new consumer devices running Windows Mobile software this year, and that Ecast, Universal Electronics, and Akimbo Systems are shipping new consumer devices using Windows Embedded technology. Additionally, Gates demonstrated prototype technology from Microsoft Research that enables users of Windows Mobile based Smartphones to remotely browse and display photos stored on their home or office PC.
SPOT
Gates then highlighted the momentum behind Microsoft's Smart Personal Objects Technology and Smart Watches for MSN Direct by introducing three new wristwatches from Fossil and Suunto, and alliances with Oregon Scientific and M.Z. Berger to develop alarm clocks featuring MSN Direct weather content (see related story). Gates also said that the amount of content available to consumers has doubled since last year's launch, and noted expanded network coverage in metropolitan areas throughout the US and Canada.
Progress in 2004
Gates concluded his keynote address by looking back at the year's progress in consumer technologies, and outlining a number of key trends that he believes will shape the future of the consumer electronics industry. Noting the continued growth in storage capacity and network bandwidth, he predicted that individual devices will soon be able to store as much data as today's largest music services, and how ultrawideband networking will make it possible to create even more diverse and innovative smart devices.
The above Bill Gates CES 2005 keynote highlights are based on information provided in a statement issued today by Microsoft. The full transcript of Gates's keynote talk is available here. Streaming video of the talk is available here (requires Windows Media Player).
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