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Gates CES keynote spotlights emerging CE/PC convergence
Jan. 08, 2004

Here are selected excerpts from Microsoft's report on the keynote address by Microsoft Chairman and Chief Software Architect Bill Gates at the 2004 International Consumer Electronics Show (CES) in Las Vegas this week . . .

Gates Unveils Innovative New Products and Services at CES, Details Vision of "Seamless Computing" for Consumers

In his keynote address at the 2004 International Consumer Electronics Show (CES), Microsoft Corp. Chairman and Chief Software Architect Bill Gates expanded on the company's vision for "seamless computing," demonstrating software breakthroughs that deliver unified digital experiences and make the technology in consumers' lives work as a connected whole. Gates introduced a number of products and services that bring the power of software to the world of consumer electronics, including MSN Premium and enhanced MSN services for broadband Internet users; and new Microsoft Windows Media Center Extender Technologies and Portable Media Centers, which make the digital entertainment experiences of Media Center PCs available throughout the home and on the go. Gates also announced retail availability of Smart Watches for MSN Direct, which provide discreet and convenient access to personalized information.

Before an audience of more than 1,200 attendees at the Las Vegas Hilton, Gates showed how Microsoft's vision for seamless computing is already helping people manage information overload, enjoy digital entertainment and make the growing amount of technology in their lives work on their behalf and under their control. Microsoft's unique role, Gates said, is to create innovations that make it easy for device manufacturers and consumer electronics companies to build powerful and compelling technology for entertainment, creativity and productivity in the home.

Home entertainment infrastructure . . .

Gates noted the momentum of digital entertainment, as growing numbers of people enjoy digital music, photos, movies, television and games in the home and on the go. He emphasized Microsoft's software innovations that extend the reach of digital media beyond the PC to anywhere people want it, unveiling Windows Media Center Extender Technologies, which allows the Windows XP Media Center Edition PC to be used as an entertainment hub for the home. With a Windows Media Center Extender product, people who use a Media Center PC to listen to music, record television shows, view photos or download movies on demand can enjoy these experiences on any television in the home, even if the PC is being used at the same time by another family member elsewhere in the home.

Microsoft is working with a number of leading manufacturers, including Alienware, Dell, Gateway, HP, Samsung Electronics, Tatung, and Wistron, to develop new televisions and set-top boxes based on this technology and bring them to market in time for the 2004 holiday season.

Gates then unveiled the Xbox Media Center Extender Kit, which combines a dedicated remote control with software that extends the Windows XP Media Center Edition experience throughout the home, allowing consumers to enjoy music, recorded television, and photos from their PC using their Xbox game console.

Portable Media Center demo . . .

The presentation continued with a demonstration of the first Portable Media Center device from Creative Labs, which makes it easy for people to take their favorite photos, music and home videos with them wherever they go. Gates also revealed that Napster LLC, CinemaNow Inc. and EMI Music are the first content suppliers to announce their support of Portable Media Center devices at launch.

TV initiatives . . .

Gates noted the increased capabilities of Microsoft TV Foundation Edition version 1.5, which enhances the consumer digital cable viewing experience by providing fully integrated support for high-definition television (HDTV) and digital video recording (DVR); and announced the arrival of high-definition video for Windows XP users, with 16 feature films being released as high-definition movies on DVD discs by a variety of publishers using Microsoft Windows Media 9 Series. (The movies offer video resolution of up to approximately six times that of today's DVD video.)

Smart Watch demo . . .

Demonstrating the expanding reach of software into new devices and services, Gates announced the retail availability of MSN Direct-ready Smart Watches from Fossil and Suunto. MSN Direct, part of Microsoft's Smart Personal Objects Technology (SPOT) initiative, enables people to conveniently and discreetly access the information that matters most to them with a glance at their wrist. The watches offer personal messages and appointment reminders, continuously refreshed news, weather and financial information, multiple watch faces and automatic time-zone adjustment.

Gates showed how people can easily configure and personalize their watches through the MSN Direct website, demonstrated a forthcoming sports information channel and noted how advanced software is making it possible to deliver the information people need is available on stylish and comfortable accessories that suit their changing needs.

The MSN Direct service is now available in more than 100 of the largest metropolitan areas in North America. The watches are available for purchase at Amazon.com and at manufacturers' Web sites, and will soon appear in major retail channels that include Federated Department Stores (such as Macy's and Bloomingdale's). The watches retail for $129 to $299; MSN Direct service is available for $9.95 a month or $59 a year.

Smartphone momentum . . .

Gates then highlighted the momentum behind Windows Powered Smartphones, noting that research firm IDC predicts that more than 20 million converged mobile devices will ship worldwide in 2004, an increase of over 133 percent from 2003.

Windows on the move in automotive . . .

He predicted a bright future for automotive-based computing systems ("telematics"), with Microsoft's first Connected Concept Cars on display at CES, a growing number of devices shipping with Windows Automotive technology, and the arrival of hands-free Pocket PC operation through the recently launched Microsoft Voice Command software.

Vision of CE /PC convergence . . .

Gates concluded his presentation with an upbeat view of the consumer electronics (CE) industry in the coming year, noting that the convergence of PC capabilities with consumer electronics devices is leading to greater choice and convenience for consumers and new opportunities for PC and consumer electronics companies. He emphasized Microsoft's continued commitment to working with the industry to enable new experiences in home productivity, communications and entertainment, and predicted that 2004 would bring broader mainstream consumer adoption of a wide range of "digital lifestyle" technologies.

"The innovation taking place in the PC and consumer electronics industries is delivering on the promise of the Digital Decade, with new technologies, devices, applications and services that will make computing a central and exciting part of everyday life," Gates said.



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