Microsoft Gets Comfy in the Living Room
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One of the past snags in gaining acceptance of PC components in couch-potato HQ has been the difficulty of integrating them into a home entertainment network.
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SEATTLE -- Microsoft Corp. has taken the wraps off "Surface," a coffee-table shaped computer that responds to touch and to special bar codes attached to everyday objects.
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NEW YORK -- Microsoft Corp. and its hardware partners are trying to bridge the divide between home computers and TV sets this holiday season with the release of several "media extenders."
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(InfoWorld) - Microsoft has chosen what it sees as the next-generation in PC form factors -- a computer the size and shape of a coffee table with a flat, touchscreen display -- as the third major product it has designed and is branding for the consumer electronics market. On Wednesday, the company revealed five-year old project "Milan," a computer that uses wireless autosync and touchscreen technology to allow users and devices to interact with files and applications using a flat, table-top screen. The company designed and is branding the computer, as it did with consumer electronics products like the Xbox game console and Zune MP3 player. To accompany Milan, Microsoft has renamed as Surface Computing a team within its Entertainment and Devices Division previously called New Consumer Products. General Manager Pete Thompson leads the group, which has worked quietly in new projects to give computers and other devices more human interfaces. "The idea is how do we start to blur the lines between the digital world and the physical world," Thompson said. The team's projects have been hush-hush, which is why Microsoft revealed the true name of the group now. Milan is the group's first commercial product. As demonstrated by Thompson and his team, Milan needs no wires to sync up with devices and users don't need a mouse to communicate with it. By placing hands on a 30-inch horizontal display, users can move around photos or videos, and even flip them over or display them from different angles. Bluetooth-enabled devices such as mobile phones, wireless cameras and Microsoft's Zune also can communicate directly with Milan simply by being placed on the screen. Applications will automatically launch and open the correct file library -- such as music or photos -- depending on the device. The prototype the company showed has a black body with a 30-inch horizontal display and stands 22 inches (55.88 cms) in height, 21 inches (53.34 cms) in depth and 42 inches (106.68 cms) in length. It runs a version of Windows Vista with the Microsoft Surface custom infrastructure that allows for the touchscreen and autosync capabilities, but the OS is transparent to end users. Before introducing Milan to a broad consumer market, Microsoft is targeting market segments, such as leisure/entertainment, hospitality and retail environments. The product won't be offered in full production until next year, but Milan's first customers -- Harrah's Entertainment, Starwood Hotels, and Resorts Worldwide and T-Mobile USAÂ -- should deploy the first computers by year's end. Harrah's is developing custom applications for about 50 Milan units it ordered, and expects to have as many of these in production as possible by year's end, said Tim Stanley, Harrah's CIO. This is customers' initial approach for Milan: Microsoft provides the computer guts, including the OS, some basic applications for photos, music and the like, and a software development kit (SDK), and customers build their own applications, Stanley said. Stanley, a former Microsoft employee, saw an early Milan version 18 months ago and was intrigued by it. Although Harrah's is not a Microsoft shop, he thought Milan would provide a "platform to do some new and innovative things for our customers." Harrah's is developing a mapping program for Milan that links to its Total Rewards customer VIP program, Stanley said. At VIP lounges, members will be able to place their Total Rewards cards on the screen and be identified by the kiosk. They will be able to browse through interactive maps that show amenities, entertainment and restaurants from Harrah's eight properties in Las Vegas -- where Harrah's will first launch Milan -- and order tickets or make restaurant reservations on the kiosk. Harrah's also is working on other applications, including one that will let customers in VIP areas of popular nightspots, such as Pure Nightclub at Harrah's property Caesar's Palace, order beverages or send beverages to other patrons, Stanley said. T-Mobile plans to deploy Milan kiosks to provide customer service in 1,200 of its retail stores, said Jeffrey Gattis, director of product management for Microsoft's Surface Computing group. Customers can take the handset model they want off the shelf, place it on Milan and use the touchscreen to configure their desired services and applications. They can then take that model to a customer service agent, he said. Microsoft said it will release an SDK for third-party developers once the computers catch on in the market. And while the company initially plans to offer the Milan hardware, manufactured by a third-party contractor, Microsoft said it might let hardware OEMs build and brand Milan computers in the future. That move will be necessary for Milan's long-term success, said Matt Rosoff, an analyst with Directions on Microsoft. "To turn it into a real business they have to take a very Microsoft approach and OEM the hardware out," he said. It will be some time before consumers will want to put in their living rooms the rather bulky prototype Microsoft is demonstrating, though this is where Microsoft is going with Milan, said David Dauod, an analyst with IDC. "Ultimately, Microsoft's goal is to see the product become something like what used to be a plasma TV," Dauod said. "As awareness grows and prices go down, [it will be more ubiquitous]. ... Ultimately, mainstream will become something you will see in the mid- to long-term." Microsoft said Milan's price will be between $5,000 to $10,000 per unit, which is too expensive for consumers in the near term, he said. Microsoft hasn't disclosed its manufacturing costs, but Dauod guesses that Microsoft does not expect a profit from Milan in the near term. More importantly, however, the product shows real innovation from Microsoft for the consumer market, the first the company has shown in a long time, he said. Both the Xbox and Zune were me-too products that entered competitive markets. Milan raises the bar for other consumer electronics vendors, Dauod said. "I've regained confidence in Microsoft with this product," he said. "It's showing a different side of Microsoft, which is cool."
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NEW YORK - Finally, there is some good news for Microsoft in its struggle to gain a foothold in the living room. The third try is always the charm when Microsoft (nasdaq: MSFT - news - people ) takes a run at a new market.
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Microsoft did something right with its new Office for Mac 2008 suite.
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Efforts by Microsoft Corp. (MSFT) and the PC industry to expand into to the living room will get a boost next week as they show off technologies that try to balance Hollywood's piracy fears with the appeal of digital media.
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The Xbox video game console and software for viewing movies on TV screens have brought Microsoft Corp.  into customers' living rooms, Chairman Bill Gates said on Wednesday, and new partnerships will help the software maker expand outside the PC arena.
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Toshiba's new projector brings home theater to tiny living rooms. In Gear Factor.
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Microsoft Corp. MSFT.O is making a renewed push this week to get its software into living rooms with the launch of a new version of its Windows XP Media Center, a personal
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Tech-inspired functional furniture is popping up as fast as those pesky ads on your favorite website. And as personal tech devices continue to evolve, &quot;so will the possibilities of integrating them into our decor,&quot; says Angelica Marden, editor of GeekSugar.com, a technology blog. Marden walks USA TODAY through the evolution of the decor superhighway.
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Microsoft Corp. MSFT.O is making a  renewed push this week to get its software into living rooms  with the launch of a new version of its Windows XP Media  Center, a personal computer designed for viewing movies,  listening to music and scrolling through digital pictures.
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Microsoft's Entertainment and Devices (E&D) Division has announced the Middle East launch of the Wireless Entertainment Desktop 7000, an ultra-thin entertainment keyboard and mouse combination which offers a host of innovative features and Bluetooth connectivity.
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Microsoft is taking the wraps off this week, but the notion of a table-like computer has generated interest at the company since at least 2001.Photos: On the road to Microsoft's Milan
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Will Microsoft feel the heat from a tiny monster?
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Design specialists dream up the unexpected to help Microsoft get a foothold in the living room.
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Entertainment technology in hotels and on airplanes is finally catching up to what travelers are accustomed to at home.