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@ CES: The Microsoft Keynote Hell & Some Content Deals

By Staci D. Kramer - Sun 07 Jan 2007 09:05 PM PST

DSC02714I expected to be in line hell before the Bill Gates keynote – they did try to make it better this year by changing venues and serving beer and wine—but communications hell was a surprise. My cell modem software (Smart WiFi ) is AWOL. No open wireless network is accessible. I even tried to pay the Sands a ransom to get WiFi only to get a series of error responses when it tried to run the transaction. That’s the long way of explaining why you won’t be getting the live blow-by-blow from me although I know plenty of people are filling that gap. You won’t be able to see my photo of Viacom CEO Philippe Dauman flanked by Judy McGrath and Michael Wolf for a while either; they were seated in the front row with Microsoft exec Blair Westlake. So far, Viacom has played a prominent role in the keynote twice: once with the announcement that Nickelodeon and Showtime would provide VOD through Vista Media Center and again when Robbie Bach mentioned the intro of Urge at CES 2006 as an example of Microsoft’s continuing commitment to Plays For Sure (although I don’t think he used that phrase).
-- Starz Vongo, which skipped Media Center XP compatibility, also will be available on the Vista version. Fox Sports has created with Microsoft something called the Sportslounge for live HD viewing in the Vista Media Center. Will update fantasy sports, provide real-time scores, go picture in picture while you work. The demo showed shots of ESPN HD; how ecumenical of Fox.
Update: I’m back in a world where WiFi works so can take a closer look at the aspects of the keynote that touch on digital media and entertainment. (You could argue it all does in some way but let’s not.)
As telegraphed in last Friday’s WSJ, Robbie Bach, president of the entertainment and devices division, made a lengthy cameo appearance. He did not actually demonstrate XBox Live downloads although a pair of staffers showed how it works. But he did lay out his division’s products—Xbox, Zune, Mobile—and the goals for connectivity between devices and services. (There are flashier ways to do it but this way one of the tech meltdowns of years past was more unlikely.) Along the line he provided some product updates and a few bits of news. .
Xbox: Xbox 360 beat Microsoft’s expectations, selling 10.4 million consoles through December. Xbox Live laid claim to being the largest “living room” social network with 5 million members. Bach said the company is selling the Xbox HD DVD Player as fast as they can ship them. Content-wise, in the past year he said Xbox 360 users have downloaded more than more than 100 million games, TV shows, movies and other materal. (Would think TV and movies to make up a relatively small part of that given the recent introduction but to be a bigger percentage next year.) Xbox Live download launched with 1,000 hours or so of content and is growing; Bach announced the addition of Lions Gate tonight.
Xbox and IPTV: The most surprising Xbox announcement—and yet it’s natural enough to be expected—is the marriage of Xbox and IPTV. Bach ticked off the known ways users can access HDTV through Microsoft: HD DVD, Media Center, Xbox Live Video. He added: “I can guarantee none of you have ever seen IPTV running on an Xbox 360.” he said it will be available for service providers during the year and for consumers for holiday ‘07. Xbox for IPTV will integrate the two experiences. Users will be to discuss live sporting events or the like, record TV while they game, etc. No details about pricing but Engadget has some more about the interface.
Zune: Bach did the political thing and gave MTVN’s Urge the nod before mentioning Zune. “It was very exciting and we are continuing to be committed to it,” he said, carefully describing Zune as the “second part of our strategy.” He also reiterated commitment to Zune and did his best to manage expectations: “In our segment of the MP3 category we are the number 2 player already.” (I’m supposed to meet with his deputy Bryan Lee tomorrow and hope to have more to share after that.)
Microsoft and Ford: Ford Motor Co. EVP Mark Fields took a major detour from the auto show in Detroit to share the CES spotlight with Gates and introduce Sync, a software product it developed based on the Microsoft Auto Platform. Voice operated and Bluetooth compatible, it literally connects personal electronic devices to the car, providing hands-free dialing, address book sync and text message reading through the stereo. On the media side, portable music players —include Zune, of course—can be controlled using voice commands or controls on the steering wheel. Most significant, perhaps—instead of appealing only to the high-end crowd by putting it in luxury models, Ford will put Sync in a dozen 2008 models across the cost spectrum and plans to expand it to all Ford, Lincoln and Mercury cars and trucks for the 2009 model year.
HP Windows Home Server: The latest device that’s supposed to back up everything across a home network, provide central media storage and do it in a way that keeps those of us who speak fluent computer from getting the usual cries for help.
The future: It just wouldn’t be a Gates keynote without a little pie in the sky. I half expected to see a Microsoft version of Coke’s iconic “I’d like to teach the world to sing.” Gates continues to see a future where devices, software and everything we do insect seamlessly. I’ll settle for a little seamlessness now for just some of what I do.
Release | Video

Posted in: Companies, Microsoft, Conferences, CES 2007


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