Windows 7, which analysts say is a streamlined version of Vista, is expected to play nicely with most of the computers in the market. That should make the software an easier sell as the sour economy leaves companies and consumers less inclined to replace computers, Di Bona said.
At CES, Ballmer highlighted a few of the key features of Windows 7, which the company said was on track to be released by next January. For example, it will make it easier to find and retrieve files such as photos, movies or documents from other machines on the same household network.
The software also will pop open a quick start page whenever a device is plugged into the computer for the first time. The feature is designed to erase memories of Vista, which often failed to recognize common devices.
Despite its shortcomings, Vista created record revenue for Microsoft, whose operating systems continue to run more than 90% of the world's desktops and laptops.
The company has said that adoption of Vista was the highest of any of its operating systems. But that's because there are roughly 40% more computers now than when Microsoft released its previous operating system, XP, in 2001, Di Bona said.
As more computing happens on cellphones, TVs and other consumer electronics, Microsoft is struggling to expand its presence. In his speech, Ballmer highlighted efforts to make headway into the "three screens" of consumers.
"By bringing together the TV, PC and phone, plus the [Internet] cloud, we can create a seamless experience that can make a difference in people's lives," he said.
On the video game front, the company announced that two installments of its Halo franchise would ship later this year. Halo Wars is expected to ship March 3, and Halo 3 ODST is expected to be released in the second half of this year.
Predecessor Halo 3 reaped an eyebrow-raising $170 million in U.S. sales in its first 24 hours on the market in 2007.
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alex.pham@latimes.com
