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Gates lifts curtain on next version of Windows
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Meanwhile, demand for the Xbox 360, which debuted in late November, is exceeding the company’s own expectations. Microsoft is on track to have shipped 4.5 million to 5.5 million units by the end of June, Gates said. Shortages experienced during the holidays were due to high demand and normal manufacturing complexities in building a new product, he said.
The year 2006 will be an exciting one for high-definition video, Gates said, as more content — from films to video games — will be produced in the higher-resolution format. The Xbox 360 will later this year have an external drive to play HD-DVDs — one of the newest high-definition DVD formats.
Google said in 'honeymoon period'
Gates’ speech was just two days before Google hosts its first CES keynote, in a sign of the Internet giant’s rising influence.
Rumors are swirling among analysts that Google may unveil a Google-based PC, or some kind of Google-based software that would compete directly with or at least indicate the increasing irrelevance of Windows desktop software, Microsoft’s bread and butter.
In an internal memo to his top executives in November, Gates acknowledged that Microsoft should act quickly in offering Web-based services to best formidable competitors.
But in a phone interview preceding his keynote, Gates downplayed a Google threat.
"I hear they're coming out with a robot that will cook hamburgers, too. Let's spread that rumor — there's nothing they can't do," Gates said in jest.
On a more serious note, Gates added: "Whatever they announce, they announce. They're in their honeymoon period, and anything they announce gets hype ... They will obviously branch out beyond Internet search, but I think the expectations won't live up to reality."
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