The main thing for Microsoft as a company is to get as much use as possible for the PC as a home entertainment device, and one way to do that is ensure that there is a lot of readily available content. Their concern is that none of the partner services will take off or will be effective, keeping Apple as a dominant platform.

The idea being that, over the life of the business, they make their money off software and peripherals.

Honestly, I'm having a hard time envisioning where this product will fit into consumers' lives. It occupies an awkward position between single-function handheld devices and laptops. I'm not sure a market exists here.

I don't really see anything new from a strategic standpoint.

If you think things are not being run well, then yesterday will lend credence to your arguments.

I really think that they're getting into the minutia here.

I'm fairly sure this will be a reference design for third parties.

The Microsoft Research division might get between $150 and $200 million, which is still pretty significant for a pure research group that isn't judged, for example, on how many products they produce. They are judged very much like an academic research organization.

They have to find a way to increase search traffic. You'll have to look a year from now to see if they made any progress.

They have to prove this year that Xbox 360 is going to be a money maker, because they have put a lot into it. Overall, I don't think there were any big surprises. Windows and Tools are going like gangbusters.