Several months ago, Microsoft declared that the product formerly called Windows CE would now be known as 'Windows Powered' [see NewsSource, Dec 06 '99]. That earlier declaration was unmentioned during the CeBIT tradeshow in Germany two weeks ago when Microsoft introduced another new look and name for the handheld operating system. The renovated product, PocketPC, is now more a set of specifications rather than just an operating system. Interestingly enough, the operating system portions of PocketPC prominently feature Pocket Explorer, Microsoft's trimmed down Web browser. Pocket Explorer will run on a wide configuration of handheld systems, making it ideal (Microsoft hopes) for non-WinCE handheld phones and pagers with Internet access. Not by coincidence, the PocketPC announcement was made three days after the launch of Palm Pilots with color screens, and one week before Palm Computing's initial public stock offering.

COURT NOTES: As settlement talks continued in Chicago, attorneys from both sides of the Microsoft antitrust case gathered in Washington DC on February 22 to give the trial's last oral arguments. This final round of courtroom maneuvering was a deliberately short session intended to do only one thing: clarify the position of both sides in regard to the legality of Microsoft's actions. Microsoft chose as its defense "plausible benefit," a legal term that means any potentially anticompetitive action taken by the company is within the antitrust law so long as it resulted in something beneficial for consumers. Microsoft's John Warden also brought up copyright issues during his argument, but Judge Jackson questioned the purpose of such an addition, since no evidence concerning copyright law was presented during the original trial or the period after his first ruling. The government half of the arguments broke no new ground, again covering things discussed earlier in the trial - a monotonous yet effective strategy, as it keeps Microsoft's defense attorneys from dragging the trial too far from its original topic and keeps everyone focused.
Following the oral arguments, Jackson thanked the participants and then went into his chambers for a brief consultation with lawyers from both sides - ending the formal trial portions of the case. the judge will now issue a ruling on how Microsoft's actions hold up under the law, and whether or not any laws were violated by them. That ruling could come any day now, assuming no settlement is reached.

Following several John Dvorak columns on the subject, Microsoft has admitted the existence of a project to give MSN Internet Access a new front end software interface similar to the one AOL uses on its own proprietary service. The interface, featuring the rainbow colors of MSN's new butterfly logo [see NewsSource, Feb 21], would be the first new software for MSN since version 2.5 was released back in 1997.
Interestingly enough, the MSN interface project is being called 'Mars', which you may recall is the rumored code name for Internet Explorer 6. That raises some questions, especially in regard to Internet Explorer being a key part of Windows. Will MSN Mars be based on IE, or will IE be based on MSN Mars? And if IE is tied to MSN, what will IE-integrated Windows be tied to? This could end up being Microsoft's latest attempt to force Windows users onto its online network. Or if our Watching Windows predictions come to pass, Microsoft may turn MSN into the world's largest application service provider. There is definitely a plan tying all these together, we just aren't sure yet what it is.

On March 1, Microsoft introduced Windows for Express Networks, a slightly updated version of what was once NT Embedded. Then in a joint announcement with Intel, Microsoft trotted out several 'server appliance' products based on WEN and Intel hardware. Server appliances (embedded systems for those of us not tied to Microsoft) are designed to do only a few repetitive tasks without any human intervention - managing small networks or operating traffic lights, as an example. Embedded systems are hot products, but for now the market for embedded system operating software is dominated by Linux and proprietary software like QNX and VXWorks. The embedded OS being pushed by Microsoft is intended to work as part of a small network, processing e-mail, managing multiple Internet connections, and transferring data between computers. (it will only work with small business networks, as Microsoft hard-wired WEN to enable no more than 25 concurrent connections.) Windows for Express Networks is for now only available with Intel's InBusiness servers, which will go on sale later this month for under $2000.

It's no secret that Microsoft is jealous of the success and high profit margins associated with game consoles, and rumors have circulated for months about the company moving forward with its own game console, perhaps called the X-Box. Fuel was added to the rumor flames last week when Microsoft purchased the xbox.com Web domain. There are no definitive specifics on the device yet, but we expect it to be little more than a high-power PC compatible machine running Windows Millennium or CE, with DVD and a high-end graphics chip. It will most likely be manufactured (like WebTV) by consumer electronics companies such as Philips or RCA, but not PlayStation parent Sony. The information we obtained does not specify whether the devices will be designed to work with standard televisions, computer displays, high-definition TV sets, or some combination of the three. X-Box could launch as soon as this fall, beating both the PlayStation II and Nintendo's Dolphin to market by almost a year.

After its purchase by Microsoft in 1997, WebTV slipped from being an example of real innovation to nothing more than a hokey attempt at Interactive television with outdated technology and a subscription price too high to be competitive. As a result of that decline, Microsoft is now forced to give away WebTV service to get new subscribers. Between now and April 30, anyone buying a WebTV Plus receiver from Sony, Philips, RCA, or Samsung will receive a coupon good for two weeks of free WebTV service. WebTV service currently costs about $25 a month, with receivers selling for $199 each.

Last Wednesday Microsoft and Sun Microsystems both invested $25 million into BroadBand Office, a startup company offering e-commerce, telephony, application hosting, network management and media services to businesses. In exchange for the dual investments, BroadBand Office agreed to build its services on products from Sun and Microsoft. This is the first time both Ms and Sun have made investments into the same company.
On March 2, Bill Gates' Corbis purchased Saba Press, a stock photo agency. Corbis, founded by Gates as a holding company for his art collection, is in a three-way race with Getty Images and Corel to obtain the largest portfolio of stock images for distribution to publishers. The latest buyout brings Corbis up to 65 million images, 2.1 million of which can be purchased online.
Electronic Arts is purchasing DreamWorks Interactive, a joint venture started in 1995 by DreamWorks SKG and Microsoft. Financial terms of the deal were not disclosed, but once it has been completed DWI will be a wholly-owned subsidiary of Electronic Arts. DreamWorks Interactive is known for a successful line of games based on the movie 'Jurassic Park', but the game publisher has been hitless for some time.
According to reliable sources, Microsoft is in the process of beta testing a Web camera system that should be ready in time for this year's holiday shopping season. The device, currently known as 'Oscar', may come with consumer level video-editing software similar to Apple's iMovie.

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