Microsoft Launches Xbox Music Service

(Century Fox Post): Microsoft Corp on Monday announced that Xbox Music, a digital music service to vie with Apple Inc's iTunes and Amazon.com Inc's Cloud Player, will be available for its Xbox game consoles on Tuesday. 

The service will be expanded to Windows software-based computers and tablets, including the upcoming Surface tablet, from Oct. 26, when Microsoft launches Windows 8. It will be expanded to phones shortly after that. 

The world's largest software maker has been trying for years to make the household living room an entertainment hub with its Xbox. More than 67 million units have been sold since 2005. 

About 18 months ago, the company realized that Xbox users were spending half to 60 percent of their time on entertainment services rather than video gaming, Xbox Music general manager Jerry Johnson said. 

The market-leading video game console already streams Netflix, ESPN and other channels and is bolstering its service with music and other video content. 

"We also realize, as an entertainment company, that music is an important ingredient on its own and as a part of different user experiences," Johnson said. 

Xbox Music replaces Microsoft's digital media brand Zune that struggled to compete with iTunes. 

Microsoft will offer a free ad-supported music streaming service, and a premium $9.99 subscription service for unlimited, ad-free streaming. 

The service includes a download-to-own music store with over 30 million songs in its global catalog, more than iTunes' library of over 26 million songs. It also carries over 70,000 music videos, available only on the Xbox console. 

It has cloud-storage features similar to iTunes and Amazon Cloud Player and an artist-based radio function like music streaming services Pandora and Spotify. 

Xbox Music will be available in 22 countries. Microsoft hopes to take the service to Apple iOS and Google Inc Android devices next year.

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Microsoft CEO 'Steve Ballmer' Sees Company Becoming More Like Apple

Microsoft may eventually make its own phones to build on its forthcoming own-brand Surface tablet PC and market-leading Xbox gaming console.

SEATTLE: Microsoft Corp Chief Executive Steve Ballmer has signaled a new direction for the world's largest software company, pointing to hardware and online services as its future, taking a page from long-time rival Apple Inc.

Ballmer's comments in his annual letter to shareholders published on Tuesday suggested that Microsoft may eventually make its own phones to build on its forthcoming own-brand Surface tablet PC and market-leading Xbox gaming console.

"There will be times when we build specific devices for specific purposes, as we have chosen to do with Xbox and the recently announced Microsoft Surface," wrote Ballmer.

The new approach mimics Apple Inc, whose massively successful iPhone and iPad demonstrated tight integration of high-quality software and hardware and made Windows devices feel clunky in comparison.

Ballmer, who took over as CEO from co-founder Bill Gates in 2000, said the company would continue to work with its traditional hardware partners, such as Dell Inc, Samsung and HTC, but he made it clear that Microsoft's role in the so-called 'ecosystem' was changing.

"It impacts how we run the company, how we develop new experiences, and how we take products to market for both consumers and businesses," he wrote.

Microsoft already makes money from providing services online, such as access to servers to enable 'cloud computing', or Web versions of its Office applications, but Ballmer's new emphasis suggests an acceleration away from its traditional business model of selling installed software.

"This is a significant shift, both in what we do and how we see ourselves - as a devices and services company," he added.

BONUS CLIPPED

Alongside the shareholders' letter, Microsoft's annual proxy filing, which deals with the shareholders' meeting and other governance issues, showed that Ballmer, 56, got a lower bonus than he did last year, partly for flat sales of Windows and his failure to ensure that the company provided a choice of browser to some European customers.

He earned a bonus of $620,000 for Microsoft's 2012 fiscal year, which ended in June, down 9 percent from the year before, according to documents filed on Tuesday with the U.S. Securities and Exchange Commission.

His salary, which is low by U.S. standards for chief executives, remained essentially flat at $685,000.

Century Fox Report: Microsoft has launched a Mobile Phone, but will consumers buy?
It is the third year in a row that Ballmer has not earned his maximum bonus, set at twice his salary.

Microsoft's recent financial year was scarred by a $6.2 billion write-down for a failed acquisition and lower profit from its flagship Windows system as computer sales stood still.

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Motorola Wins German Patent Case Against Microsoft

(Reuters) - Mobile phone maker Motorola achieved a rare victory against software giant Microsoft in a patent case before a German court on Friday, the latest in a wave of patent lawsuits by technology firms fighting over market share.

The regional court in Mannheim ruled that Motorola Mobility, part of Google, did not infringe a Microsoft patent which enables applications to work on different handsets.

This allows application developers to avoid writing separate codes for each handset saving time and development costs.

Germany has become a major battleground in the global patent war between makers of mobile phones, tablet computer devices and their operating software because court actions there have proved relatively cheap and quicker than in other jurisdictions.

Microsoft has won three patent cases against Motorola in Germany. As a result of these rulings, smartphones with the disputed technology are no longer available on the German market.

"This decision does not impact multiple injunctions Microsoft has already been awarded and has enforced against Motorola products in Germany," said David Howard, associate general counsel at Microsoft.

Google bought lossmaking Motorola Mobility for $12.5 billion last year, in its largest acquisition ever, aiming to use the company's patents to fend off legal challenges against its Android mobile platform and expand beyond its software business.

Other technology companies have also invested billions of dollars in buying up patent portfolios that they can use against rivals.

Motorola could not immediately be reached for comment.

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Security Experts Warn Of Bug In Microsoft's Web Browser

Computer security experts are urging PC users to temporarily stop browsing the Web with Microsoft Corp's Internet Explorer, saying a newly identified bug in the software makes computers susceptible to attack by hackers.

"Bad guys can use this vulnerability to do bad things to your computer. They can access all the files you have access to on your computer," said Tod Beardsley, an engineering manager with the security firm Rapid7.

In response to a request for comment, Microsoft said in a statement, "We are actively investigating these reports and will take the necessary steps to help protect customers."

In the meantime, security experts said that computer users should avoid Internet Explorer.

"There are other browsers that people can use temporarily until the problem gets fixed. Or they can gamble," said Paul Ferguson, senior threat researcher with Japanese anti-virus software maker Trend Micro Inc.

"Why take the risk? I'd stay the heck away," said Jeff Bardin, chief intelligence officer with Treadstone 71, a cyber security consulting firm.

Eric Romang, a security adviser with e-Business & Resilience Centre, a firm in Luxembourg, discovered the bug on Friday while investigating servers that he suspected were being used by hackers, according to his blog.

Century Fox Report: Microsoft Mobile launched.But will consumers buy?

Those hackers had figured out a way to infect computers by exploiting the previously unknown vulnerability in Internet Explorer, according to Beardsley.

The hackers could put malicious code onto healthy websites and cause surfers who visited those sites to have their machines infected, Beardsley said.

Internet Explorer was the world's second-most widely used browser last month, with about 33 percent market share, according to StatCounter. It was close behind Google Inc's Chrome browser, which had 34 percent of the market.

More News: Microsoft's First Quarterly loss in 26 years

Marc Maiffret, chief technology officer of security firm BeyondTrust, said that some businesses may not be able to stop using Internet Explorer because they use applications or sites that are not compatible with Chrome or other options.

He said that such companies might consider making their systems compatible with Chrome.

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Nokia Lumia 920: First Impression

The Nokia Lumia 920 was announced in New York yesterday. Photo: Reuters

The new Nokia Lumia 920 mobile phone is the best the company has ever made – its 4.5” screen curves round a pleasingly solid body that contains a camera that’s so clever it can even work out when people walked in front of your shot, or add some moving elements to still photographs. Its maps now seamlessly add content from the web to show the street you’re walking down in glorious ‘augmented reality’. Wireless charging means that even your bedside table or desk will look neater thanks to Nokia.

There is, of course, a ‘but’ – the operating system, Windows Phone, is struggling to attract users and Microsoft’s overall market share is still falling. Nokia couldn’t get its act together to release prices or release dates for its latest, lovely handset. That basic blunder is not one that Apple will make when it announces the iPhone 5 next week, or that Samsung makes when it launches important new products.

The Windows Phone 8 software remains excellent – its start screen has been upgraded to use space more effectively, live tiles continue to offer constant updates. Nokia itself has worked hard with partners to build apps that provide real enhancements for the camera, and the package comes together to make sure consumers feel that they’re always using one coherent device rather than a phone that is constantly having new apps bolted uncomfortably onto it.

Offline maps, too, work so well that the satnav is even more redundant than it was before, because they’re built in properly to the phone. In the short time I had hands-on with the phone, all the camera features worked effectively, and the wireless charging is a neat addition, but of course stil relies on users being near to a charger, albeit one that is now wireless in its connection to the phone.

The biggest challenge Nokia faces in the UK is not that there aren’t many users who will soon be buying their first smartphone and could be tempted by a Windows Phone. In an objective world, it would probably be the most tempting on the market. The real problem is that to attain the critical mass Windows Phone needs, it must, led by Nokia, steal users from Android and Apple. While that ought to be perfectly possible, it’s hard to see anybody managing, even with pockets as deep as Microsofts. The Windows maker can’t afford to fail, but it will need many more devices at least as good as the 920 to reach its goal.

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Samsung Unveils ATIV S, The First Smartphone Using Microsoft Software

Samsung Electronics became the first handset maker to announce a smartphone using Microsoft's latest mobile software.

BERLIN/SEOUL: Samsung became the first handset maker to announce a smartphone using Microsoft's latest mobile software, making its surprise, hurried announcement just days before the highly anticipated launch of Nokia's version.

The brief announcement on Wednesday at a Berlin electronics show comes amid expectations that smartphone makers may turn increasingly to Windows devices after a US jury decided many of Samsung's Google Android-based phones infringed Apple Inc patents.

"It looks like a good phone, and seems like a pre-emptive announcement ahead of Nokia," said Sid Parakh, an analyst at investment firm McAdams Wright Ragen, of the Samsung phone.

"Microsoft or Windows never got their best teams, never got their best designs, just because Android was doing so well. With the change in the legal environment, there's a case to be made that Samsung will likely shift some of those resources to broaden out or diversify their own exposure."

Nokia, the ailing Finnish mobile firm, once the world's leading producer of phones but now struggling to reverse losses, is due to unveil its new Lumia line of smartphones using Windows Phone 8 in New York on September 5.

Samsung's new phone called ATIV S -- tacked onto the end of a long news conference in Berlin that focused on other products -- may elevate expectations for the Lumia. Samsung's ATIV S Windows phone sports a high-end 4.8-inch display, Corning "Gorilla" glass, and an 8-megapixel rear camera and 1.9-megapixel front-facing camera, Microsoft posted on its official blog on Wednesday.

"Expectations for a 40 megapixel or possibly 20 megapixel camera model are running high. If Nokia does not unveil a monster camera handset next week, many will be disappointed," said Tero Kuittinen, analyst at mobile analytics firm Alekstra.

But "this leaves Nokia plenty of room to draw a clear contrast with its upcoming announcement."

Samsung's Windows-based smartphone, introduced on Wednesday, marks the first in a "big lineup of new hardware" from the South Korean company based on Microsoft's software, Microsoft executive Ben Rudolph said in a blog posting.

Analysts say the introduction of Samsung's Windows phone may be designed to assuage concerns that Microsoft will favor Nokia, whose Chief Executive Stephen Elop -- himself a former senior Microsoft executive -- has staked its future on the Windows platform.

"The fact Samsung was allowed to be the first to announce is Microsoft's backhanded way of letting other vendors know that Nokia is not getting special treatment," Current Analysis analyst Avi Greengart said.

But Jack Gold, an independent mobile consultant who runs J. Gold Associates, argued Samsung had signalled its commitment to Windows for a while, but Nokia will remain the primary driver of the new breed of Microsoft-powered devices.

"Samsung has crossed the start line first and set the bar for Nokia's launch," said Geoff Blaber, analyst at CCS Insight.

Stealing a march
Microsoft gave a preview of its Windows Phone 8 software in June, and promised the first phones would be on the market by the autumn.

Windows Phone 8 looks similar to, and is built on the same core code as Microsoft's upcoming Windows 8 operating system, but is not the same product. Windows 8, which will run on tablets and PCs, is scheduled to launch on October 26.

Samsung said the ATIV phone would hit stores in the October-November period but did not give an exact start date.

On Wednesday, the Korean corporation also showed off a slew of tablets using Windows 8 software and the second generation of its popular Google Android-based Galaxy Note phone-cum-tablet "phablet" in downtown Berlin.

Samsung has sold some 10 million of its original Galaxy Note devices, creating a new product category which has smaller screen than tablets, but bigger than smartphones.

"I am pretty confident it will even outsell its predecessor," said JK Shin, Samsung's chief of mobile business.

Samsung hopes the new device will take the focus away from its loss of the court case. Apple is now seeking speedy bans on the sale of eight Samsung phones, moving swiftly to turn legal victory into tangible business gain.

Analysis:"How Apple Overwhelmed Samsung's Patent Case Tactics".

Samsung hopes the phablet upgrade will lift any post-Apple gloom. The new version of the Note features a thinner and slightly bigger 5.5-inch screen, quad-core processor, the latest version of the Android operating system called Jellybean, and improved stylus function.

"There won't be huge innovative changes in design, but the Note 2 will feature quite a few improvements and enable Samsung to carry on its strong sales momentum in the category," said Lee Sun-tae, an analyst at NH Investment & Securities. "With the launch, Samsung will also be trying to turn around downbeat sentiment after the US legal defeat."

Apple did not include the Note and other newly unveiled Samsung products in its original lawsuit. But the company and its lawyers are expected by many legal experts to try and use last week's legal victory to go after future gadgets, especially because the jury found infringing features in Samsung phones such as pinch-and-zoom and bounce-back -- common in Android.

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Microsoft Mobile,But Will Consumers Buy?

Joe Belfiore, corporate vice president of Microsoft, introduces the Windows Phone 8 mobile operating system.

The technology industry is buzzing that Microsoft Corp. (MSFT -0.20%) could emerge a winner after Apple Inc.'s (AAPL -0.13%) big patent suit victory. But there's a catch: Consumers must be convinced they want what Microsoft is selling.

The ruling against Samsung Electronics Co.—and the blow to Google Inc.'s (GOOG +1.20%) Android software that powers its phones—has given carriers and phone manufacturers a strong incentive to pursue an alternative mobile operating system.

Yet while carriers have offered their marketing support and Microsoft has paid some developers to build apps, phones powered by the Windows Phone operating system haven't yet fully resonated with consumers.

For wireless store manager Luke Connell, the problem with Windows phones is that he can't play the popular game "Words With Friends." For Swedish designer Jacob Ravn, the issue is that the Microsoft phone interface doesn't match the iPhone's ease of use. And for Ryan Matzner, a director at the mobile software consultant Fueled, there aren't enough people using Microsoft phones for him to recommend clients build new games and services.

"I would love to develop Windows apps, but that ecosystem just isn't there," Mr. Matzner said.

Sales of Windows phones have disappointed Nokia Corp., which receives regular payments from Microsoft to develop phones using its software.

Nokia's current high-end Windows smartphone, the Lumia 900, got a big marketing push from No. 2 carrier AT&T Inc. (T -0.62%) earlier this year. Behind the scenes, AT&T's independent wireless dealers also have a strong financial incentive to sell the device.

Profits on a sale of the Lumia are $70 higher than on the iPhone and $15 higher than on the popular Samsung Galaxy S III, which runs Android, according to an independent AT&T retailer with a network of stores. The Lumia 900 accounted for only about 2% of those stores' unit sales, this retailer said.

The results are similar at T-Mobile USA, the country's fourth-largest wireless carrier. Saber Ammori, an independent retailer who owns 155 T-Mobile stores across the country, says Windows Phone devices account for just 3% of his sales.

"It just hasn't taken off with a lot of people," Mr. Ammori said.

Worldwide, Windows accounted for just 3% of global smartphone sales in the second quarter, up one percentage point from a year earlier, according to International Data Corp.

(AAPL -0.13%) Microsoft's next attempt to win over phone buyers will come next week, when it is expected to unveil the first smartphone built on its newest Windows Phone software, in partnership with Nokia Corp. (NOK1V.HE -7.82%)

Many in the technology industry think the unique design of Windows Phone could give it an advantage in the mobile industry as Apple tries to crack down on copycats.

Rather than rely on a grid of iPhone-like square icons to represent applications, as Android's interface does, Windows Phone presents the user with interlocking tiles of different sizes.

Mr. Connell, a manager in O'Fallon, Mo., at one of Mr. Ammori's stores, said Windows phones are being considered by customers who are buying their first smartphone and aren't looking to do much with it but check e-mail and browse the Web.

"The apps aren't as rich on the Windows phones yet as you see in Google," Mr. Connell said.

Microsoft faces a classic chicken-and-egg problem. The company is having a hard time winning over app developers because it lacks a large base of phone customers.

And it is struggling to win over customers in part because it is missing popular apps like photo-sharing service Instagram and game "Angry Birds Space."

Imangi Studios, a small mobile-game studio that makes the popular "Temple Run" game available on iPhone and Android, says it has no plans to build a version for the new version of Windows phone software even though Microsoft asked them to do so.

The small software developer previously adapted its iPhone game "Harbor Master" for the current version of Windows after Microsoft paid it to do so. The version was released in March 2011 and sold for $2.99, but although it was a top seller on Windows it didn't lead to many overall sales because the audience was so limited, Imangi co-founder Keith Shepherd said.

"It did not do great for us," co-founder Natalya Luckyanova said. Imangi only has three employees, and the company would rather focus on developing and improving games than adapting games for new platforms, Mr. Shepherd said.

Microsoft said its Windows Phone Marketplace offers more than 100,000 apps and games, with hundreds more coming each day.

Nokia, which is using Windows to power all of its new smartphones, also pointed to the growing roster of apps, saying it has made progress "creating an alternative to Android and Apple."

Among the new Windows Phone apps to be unveiled in the coming months are Zynga Inc.'s (ZNGA +0.65%) "Draw Something" and "Words With Friends"—popular games on Android and the iPhone.

Some developers, however, say Windows versions of apps can be inferior to those made for Apple and Google. Radio app Spotify has a rating of 4.5 stars out of 5 on iPhone, while the Windows version gets just three stars out of 5.

"Just because the app is on a platform does not mean that it is good," said Mr. Matzner, the mobile software consultant.

Jason Goldberg, CEO of design website Fab.com, which gets about 25% of its weekly sales from mobile, says it has no plans to develop for Windows this year even though the company is prioritizing mobile development over the Web.

The reason is it's easier to make sales on the iPhone thanks in large part to the built-in iTunes billing system.

Mr. Ravn, a digital designer who lives in the southern Swedish town of Hammenhög, bought a Nokia Windows phone a few months ago after he heard rave reviews from friends. Within days, Mr. Ravn was back to using his iPhone.

"A lot of things weren't as intuitive as they are on the iPhone," Mr. Ravn said. "In order to try to somehow challenge Apple and be different, I think they just maybe went a bit too far.

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Microsoft's New Logo After 25 Years

(Reuters) - Microsoft Corp unveiled its first new logo in 25 years on Thursday as it looks to unify its branding ahead of a clutch of new product releases this year.

The world's largest software company is introducing a dash of color in its first logo redesign since 1987, using a new multi-colored square next to a plain rendering of its name, replacing its well-worn italic style logo.

Microsoft is rolling out its new Windows 8 operating system along with new Office and phone software this autumn, and is hoping the new logo unifies customers' experience of the company, much like rival Apple Inc's distinctive logo has for its consumers.

"It's been 25 years since we've updated the Microsoft logo and now is the perfect time for a change," said Jeff Hansen, general manager of Microsoft's brand strategy, in a blog on Microsoft's website. "This wave of new releases is not only a reimagining of our most popular products, but also represents a new era for Microsoft, so our logo should evolve to visually accentuate this new beginning."

The new design, which resembles the existing logo for Windows, its most important product, is already in use on Microsoft's website and is being unveiled at its latest store opening in Boston on Thursday.

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