Confirming earlier rumors, departing Microsoft CFO Peter Klein said today on an earnings call that Microsoft is working with manufacturing partners on smaller versions of Windows 8 devices, which likely means 7- or 8-inch Windows 8 tablets.

Klein said that “a new suite of small touch devices powered by Windows” would be available “in the coming months.” He did not say Microsoft would be making its own smaller Windows 8 devices, but that’s certainly not out of the question considering the release of the 10-inch Surface and Surface Pro tablets.

Microsoft recently lowered the minimum resolution requirements for Windows 8 devices, which opened the door for less expensive 7-inch or 8-inch tablets powered by Windows 8.

A recent Wall Street Journal report also said a 7-inch Microsoft Surface tablet was in the works.

On top of hosting today’s call, Klein announced that he would be leaving the company at the end of its current fiscal year. Klein has worked for Microsoft 11 years and served as CFO for about four years.

Surface Pro photo via Devindra Hardawar/VentureBeat

Microsoft has dropped the resolution requirement for Windows 8 on tablets to 1,024 by 768, opening up the possibility for less expensive 7-inch or 8-inch tablets running the fledgling operating system.

While the company has released its own Surface tablets and Microsoft partners have released Windows 8 tablet/laptop hybrids, the smart play is to offer 10-inch and 7-inch experiences to hit every possible market. Apple, for example, offers both the iPad and iPad mini. Samsung, Google, and Amazon also offer a variety of tablet sizes. So it would be smart for Windows 8 to come to 7-inch screens to compete with the offerings of all these other players.

Microsoft quietly announced the changes in a “Windows Certification Newsletter” released March 12, but it was spotted by ZDNet on Thursday. Microsoft writes in the newsletter:

We’re changing the System.Client.Tablet.Graphics.MinimumResolution requirement to create a consistent minimum resolution of 1024 x 768 at a depth of 32 bits across all Windows 8 system form factors. The physical dimensions of the display panel must still match the aspect ratio of the native resolution. This doesn’t imply that we’re encouraging partners to regularly use a lower screen resolution. In fact, we see customers embracing the higher resolution screens that make a great Windows experience. We understand that partners exploring designs for certain markets could find greater design flexibility helpful.

At the lower resolution, Microsoft notes that the “snap” feature will end up being disabled to create a better experience. Manufacturers will need to disclose that snap is disabled.

Microsoft also used this newsletter to announce that Windows 8 tablet screen sizes peak at 17 inches and can be no larger than that.

Microsoft Surface photo via Devindra Hardawar/VentureBeat

Microsoft’s new Surface Pro tablet PC is a steady improvement over the Surface RT, but the thing is extremely hard to repair, according to a new iFixit teardown.

The Surface Pro is Microsoft’s more powerful and versatile tablet/laptop hybrid, but supply issues have marred its debut. Microsoft has promised more 128GB units will be available by Saturday. It runs $899 for the 64GB version and $999 for the 128GB model.

While there aren’t that many Surface Pros available, the repair experts at iFixit got their hands on a unit so they could open it up and examine its build. The team found that the device was extremely hard to repair, and gave it a 1 out of 10 “repairability score,” the worst result possible.

One huge problem iFixit found is if you do not open the case perfectly, you will almost certainly break one of the four cables surrounding the display. So there’s a good chance you’ll break the damn thing just from trying to peek inside or trying to fix a minor issue.

Here are the big takeaways iFixit noted on the Surface Pro:

• Microsoft Surface Pro Repairability Score: 1 out of 10 (10 is easiest to repair)
  
• The battery is not soldered to the motherboard, so at least no soldering is required to replace it.
• The SSD is removable — but you risk killing your tablet by trying to open it.
• More than 90 screws are inside this device. We’re proponents of mechanical fasteners, but this number is a tad crazy.
• The display assembly (comprising of a fused glass and LCD) is extremely difficult to remove/replace.
• Tons of adhesive hold everything in place, including the display and battery.
• Unless you perform the opening procedure 100 precent correctly, chances are you’ll shear one of the four cables surrounding the display perimeter.

Check out the photos below for a few more looks inside the Surface Pro:

One of the juiciest: Surface Pro is able to run other operating systems than the default Windows 8.

Reddit user Nygmatic asked the question:

For the Surface Pro….is the boot loader unlocked? Can I do what I want with my (potential) property? Or am I locked in to Windows 8?

July 9-10, 2013
San Francisco, CA

Early Bird Tickets on Sale

If Microsoft wants to win in 2013, it needs to win in the mobile realm. That much is clear. But how does it take the crown from the likes of Apple and Google?

While Microsoft wouldn’t explicitly tell me about its plans for 2013 or generally talk about what it wants to accomplish, there is a lot we can glean from looking at what Microsoft did in 2012 and from the company’s previous statements. I’ve also talked to two experts who have kept close tabs on Microsoft’s product strategy over the years.

Here are three big things Microsoft will focus on in 2013:

Tablets, tablets, tablets

With the launch of the Surface RT and the Surface Pro, it’s clear Microsoft wants to be part of the tablet conversation. Microsoft was actually one of the first players in tablets back in the early 2000s, but the market shrugged off its efforts. Now that Apple’s iPad and Android tablets like the Nexus 7 have come to dominate the slate space and PC sales are falling off, Microsoft wants to get back in the tablet game.

“Microsoft will place a do-not-fail priority on tablets in 2013,” Forrester infrastructure and operations analyst David Johnson told me.

Johnson does not expect Microsoft to release its own smartphone hardware this year, so tablets will get full priority. Besides making Surface better, he said the other big priority will be making Windows RT lighter and better.

“I’d expect RT to be the focus for now, but they could do an entirely new tablet OS as well if that doesn’t work out,” Johnson said.

Office 365 and Office 2013

Another major tool in Microsoft’s belt is Office. Outside of Windows OS and Windows Server, Office has been the most important product in the company’s history. The latest version of the productivity suite for consumers just hit the market this week, and it’s actually quite nice.

Microsoft is pushing its Office 365 subscription service, which runs $100 per year, as the best deal you can get. A subscription to Office 365 lets you install five copies on your PCs or Macs and deeply connects to the cloud to back up your documents. Office 365 also gets you Office on Demand, which lets you stream a copy of Office to any Windows 7 or 8 PC and doesn’t count toward your number of installs. There’s also a version for students — Office 365 University, which costs $80 for four years of use.

The new versions of Office 365 and 2013 are more touch-friendly, so it’s somewhat better suited for tablets and touch-screen laptops. The most basic version of the latest Office comes pre-installed on the Surface RT tablet and will be able to be installed on the Surface Pro tablet, which hits stores on Feb. 9. A mobile version of Office also comes pre-installed on Windows Phone devices, one of the biggest selling points for that OS.

There have been perpetual rumors that Microsoft will release native Office apps for iOS and Android some time this year. But Microsoft has routinely denied these rumors.

“It’s not certain, but I’m betting on Office for iOS and Android,” Johnson said. “Enterprises won’t be proactively buying Surface Pros. Employees might not want to buy Surfaces, but they could buy iPads for work.”

Avi Greengart, research director for consumer devices at Current Analysis, also believes iOS and Android apps for Office are on the way.

“If Microsoft doesn’t put Office on those platforms, it risks losing that franchise,” Greengart said. “It’s also important for Microsoft to develop a more touch-friendly version of Office for Windows tablets. The version today is not there yet.”

Windows 8 and Windows Phone apps

The third pillar for Microsoft’s mobile success in 2013 will be apps built for Windows 8 and Windows Phone that help get people better interested in those platforms. Windows 8 and Windows Phone 8 together have millions of users, and the two even share a kernel so it’s easier to develop for both platforms at the same time.

“It’s all about apps,” Johnson said. “Apps on Windows Phone are good, but they’re not quite as complete as iOS and Android apps. 2013 will see a big push on app development.”

Windows 8 especially needs apps to get people excited about tablets like Surface and hybrid laptops like the Lenovo Thinkpad Helix or Samsung’s ATIV Smart PCs running that OS. A number of good applications already exist for Windows 8, but will the company invest further to make Windows 8 a must-have OS?

And better apps on Windows Phone certainly wouldn’t hurt either. Windows Phone sales haven’t been particularly impressive, but they could get better with smart productivity apps and imaginative Xbox games. Hell, the success of Microsoft’s Xbox console could arguably be traced back to exclusive titles like Halo and Halo 2, so why not have an exclusive set of games on Windows Phone to help turn heads?

Greengart thinks Microsoft needs to bring an exclusive Halo game to Windows Phone and improve the overall presence of Xbox on Windows Phone.

“Game exclusives could drive adoption of the Windows Phone platform,” Greengart said. “Why isn’t there a Halo application for Windows Phone? Where are the games that are branded with more than just your Xbox Live avatar? These issues need to be addressed.”

What do you think will drive Microsoft’s mobile destiny in 2013?

Steve Ballmer photo via Sean Ludwig/VentureBeat

Advertising and analytics company Chitika released its December 2012 tablet market update, and the numbers aren’t great for any tablet that doesn’t start with the letter I.

“For every 100 iPad impressions, other tablets have 14.75,” Gabe Donnini, Chitika’s data solutions engineer, said today. “Eighty-seven percent of the tablet web traffic in North America is generated by iPad.”

The biggest chunk of that non-iPad traffic comes from the Kindle, with 4.88 pageviews for every 100 on the iPad. Kindle did grow a very healthy 20 percent month-over-month, however, compared to Chitika’s November statistics. These 4.88 pageviews translate into a 4.25 percent share of all tablet web traffic.

After Kindle, Samsung’s Galaxy has 3.04 pageviews to every hundred on an iPad. Google’s Nexus clocks in at 1.22 pageviews for every 100 on an iPad, and the Nook and Playbook are both under one. All Android tablets together have only  about nine web pageviews to every hundred on an iPad, if you don’t include the Kindle, or 14 if you do. And the Microsoft Surface, which was of course just released earlier this year, has only .22 pageviews for every hundred on an iPad.

This is not an impressive performance in a tablet market that is now almost three years old, based on when the first iPad was released.

Of course, the big question is: Will this change after the holidays? In other words, was it an iPad Christmas, or did more millions unwrap Android tabs this holiday?

“We’re in the process of generating a new report right now to compare pre-holiday and post-holiday traffic,” Donnini said. “We want to see who won the battle for market share … and see what people got on Christmas.”

That report will be coming out shortly, and we’ll have those details on VentureBeat.

photo credit: albyantoniazzi via photopin cc

Microsoft will ring in the new year by opening six new retail locations that will help customers get better exposure to products such as its Surface tablet and Windows Phone devices, the company announced today.

In a clear mimicking of Apple’s retail strategy, Microsoft opened 51 “full-line” (large retail locations) and “specialty” stores in 2012. With electronics shops like Best Buy and RadioShack closing stores, it’s important for Microsoft, like Apple, to educate folks about its products and partner products.

The new shops could help educate customers about its still-new Windows 8 operating system, various Windows Phone 8 smartphones, and Microsoft Surface tablets running Windows RT and Windows 8.

The six new Microsoft retail locations will be at:

• The Shops at La Cantera, San Antonio, Texas
• Dadeland Mall, Miami, Fla.
• Beachwood Place, Beachwood, Ohio
• Westfield San Francisco Centre, San Francisco
• City Creek Center, Salt Lake City
• St. Louis Galleria, St. Louis

Microsoft said it expects to open “many” other stores in the near future as well.

We’ve had questionable experiences with Microsoft’s retail store in Austin, Tex., but we realize there are other stores around the country where people might be more friendly.

Microsoft Store via Rob Stinnett/Flickr

According to a new poll by Nielsen, kids just want iDevices … and a Wii U. Half want an iPad, and roughly a third of all kids also want an iPod Touch, iPad Mini, or an iPhone under the tree. Almost 40 percent also want a new Nintendo Wii U, and 31 percent want a Kinect for the Xbox 360 they got last year.

Source: Nielsen

Toys kids 6-12 want most

Of course, some kids still absolutely need an Xbox 360 or a Sony PlayStation 3: almost a quarter of all kids want one of the major console games this winter. And another 29 percent want a non-Apple tablet to waste Christmas break on.

Older kids, however, have somewhat different tastes. Or they’ve learned to control their burning desire for new techie toys to a degree.

Electronics still top the list, but for kids aged 13 and older, only 21 percent want an iPad, with a computer coming in at second place with 19 percent of the vote. A non-Apple tablet is proportionately much more in demand with teens: 18 percent want an Android or other type of tablet – just three percent fewer those who want an iPad.

Microsoft Surface, alas, languishes in the hearts and minds of  just 3 percent of teens — although six percent of kids age 6-12 want Microsoft’s new tablet.

Source: Nielsen

What teens want most …

The question now is whether what kids want will translate into the products parents buy.

Somehow — speaking as a parent — it usually does.

photo credit: ze_bear via photopin cc

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The question is, what does that mean for the future of Windows and Surface?

To help answer that question, I talked to Patrick Moorhead of MoorInsights, who has worked with Sinofsky on multiple occasions and talked to others he works with. The upshot is that it’s possible Steven Sinofsky is another Scott Forstall: an ass-kicker who gets stuff done … at a cost.

“He was a very alienating character. He alienated partners, he alienated ISVs, he alienated other people at Microsoft, and left a trail of disenfranchised people,” Moorhead told me.

“It’s very similar to the recent departure from Apple of Scott Forstall,” he added. “I’ve worked for people like this … they end up getting a lot of things done — amazing things, actually — but they hurt a lot of people.”

That’s something others have noted as well, citing a “relentlessly aggressive style.”

Sinofsky was in charge of Windows 7, a massive success that Microsoft badly needed after faltering steps like Vista. And, though it’s too early to say whether Windows 8 is going to be a complete success, there’s no question that Sinofsky has re-imagined the Windows experience. Our own Microsoft expert says that it “stuns and amazes,” even if it does sometime let users down.

Both his work on Windows 7 and Windows 8 gave Microsoft a modern desktop operating system after years spent in the XP and Vista wilderness. And Sinofsky’s work on Surface promises — yes, still only promises – to make Microsoft relevant in the tablet marketplace.

That’s a pretty good record.

And it’s something that former Microsoft EVP and chief operating officer Bob Herbold would seem to appreciate. He was with Microsoft during its period of rapid growth from 1994 to 2001 and is emphatic about ignoring consensus.

“As small organizations start to get large, they make decisions by consensus, which is the kiss of death. Great ideas are made by individuals. Consensus takes a great idea and makes it average.”

That said, Sinofsky’s replacement on the Windows software and hardware side is no slouch: Julie Larson-Green. She led program management for both Windows 7 and Windows 8, which means that all the threads came together through her. Program managers, however, sometimes have the bark without the bite.

And it’s one thing to ignore consensus and charge forward on the path you believe to be right, another thing to be abrasive, difficult, and demeaning along the way.

“This is the very classic story of the autocrat who can get mountains of people to do something, and is not afraid to ruffle feathers,” says Moorhead, “but as companies grow, priorities change.”

Microsoft CEO Steve Ballmer, for one, thinks innovation can happen without the alienation, saying that the company “has more amazing” in it. At the very least, the switch is a chance to prove that you don’t have to be a jerk to get stuff done.

photo credit: Dell’s Official Flickr Page via photopin cc

While Apple finally put its iPad mini commercial out for public consumption over the weekend, some fans of Microsoft’s new line of tablets have already started to produce spoofs.

The video above parody’s the Apple commercial that starts our with someone playing a piano via Garage Band. However, the iPad mini is replaced with a Surface tablet, which starts blaring some upbeat music. It then starts zipping around the screen, breaks the iPad’s screen as well as the mechanical hand that was playing the piano. The video ends with a warning sign that reads “Caution: Hot Surface, Do Not Touch,”

The video, created by Seattle-based creative firm Cinesaurus, is better than any of the commercials we’ve seen from Microsoft thus far.

Just to be certain, we’ve contacted the creative team to find out if Microsoft hired them. Either way, the video (embedded above) is worth checking out. Let us know what you think in the comment section below.

He knows technology, having been a computer programmer, and he knows business, as an economics major and a successful business owner. He’s also a candidate for President of the United States of America, believe it or not.

(I did say eccentric genius.)

So when he skewers a tech company, he skewers a tech company. Here’s today’s strip — it shouldn’t take you long to figure out who this one is targeting:

Source: Dilbert.com

Dilbert for November 6

Microsoft, of course, has recently redone both its corporate logo and its iconic Windows logo. And, surprise, surprise, Microsoft has just released a new tablet computer.

Adams raises two questions: Is no-one buying Microsoft’s Surface tablets? And is Microsoft on a long slide toward irrelevance?

First, on Surface sales …

Microsoft certainly thinks it’s going to sell a decent number of tablets, since the company is putting its money where its mouth is and building three million units this year. Three million may not sound like a lot in a tablet market that already has 100 million iPads, but Apple only sold three million in its first quarter of sales, and that was in a market with very little competition.

Surface tablets have drawn some reasonable crowds, with some even getting as giddy as new iDevice owners, and reports of solid if not spectacular sales. And yes, Oprah has endorsed Surface, calling it a “wowser.” With some positive and some negative reviews — OK, more negative than positive — at least people are talking about it.

Realistically, we don’t know what Surface sales will be until Microsoft announces some more details. But it seems likely that the company is going to have decent sales at least, and further iterations of the product — that is, after all, a Redmond specialty — will improve.

So no, it’s not true that no one will buy it.

Second, on the future of Microsoft

In the long term, every company dies. That’s life .. . or business, rather.

And Microsoft will never again be the one dominant force in the market that it was in the 1990s and early 2000s. The market has moved beyond that, and there are too many players in at too many levels. It’s not all about operating systems anymore, and it’s not a binary model: PC vs Mac, or rather, Microsoft vs. everyone else.

But irrelevant?

That’s a big stretch. And I get that a cartoonist is looking for a metaphorical truth, not a literal truth. But it’s hard for a company with a $250 billion market cap to be irrelevant. Especially when that company still holds dominant positions in desktop operating system, home gaming systems, and office productivity software, not to mention its large array of enterprise products.

Microsoft may very well have some pointy-haired bosses. Most companies do. But Steve Ballmer, you may have noticed, is bald.

photo credit: Ol.v!er [H2vPk] via photopin cc

In case you’re curious why there’s no 16GB Surface, here’s the answer.

Microsoft officially revealed today that roughly half of the storage space of the 32GB Surface is used by Windows RT itself.  This leaves Surface users with 16GB for all of their personal files, a tiny sum for most computer users in 2012.

But why does Windows need all of that space? As you can see from the screenshot to the right, it’s all about recovery software, Microsoft Office, and other built-in apps.

To understand how crazy this is, consider that on the 16GB Nexus 7, Android uses up a little over 1GB of space for system files. Same goes, roughly, for iOS 6 on the iPad. So while no device comes entirely with its advertised storage, few devices go to such extremes as the Surface.

Fortunately, Surface owners have the option of buying SD cards and USB sticks to supplement, although the better solution at this point may just be to go for the 64GB Surface, which is left with 46GB of space after the Windows RT install. Another solution is to sign up for Microsoft’s cloud-based SkyDrive storage, which is free for the first 7GB.

In our review of the Surface we found a lot to like , even though it didn’t fully live up to its potential.

Photo: Devindra Hardawar/VentureBeat

These days, the best gadgets on the market are all aiming at the same lofty goal: no compromises. Consider the most recent MacBook Pros, Sony’s NEX lineup of cameras (and similar mirrorless shooters), or Jawbone’s fantastic Jambox Big wireless speaker: These devices may have their minor flaws, but for the most part they work so well that you practically feel empowered by their capabilities.

Without compromises, these devices feel as if they were formed purely to accomplish a specific task well and never get in your way. In the end, isn’t that the the entire point of good technology?

From the moment Microsoft debuted the Surface tablet back in July, it’s seemed like the ideal no-compromise device. It’s far thinner than any ultraportable laptop could hope to be, and, with the innovative Touch and Type covers, it also has the potential to be a more productive tablet than Apple’s iPad (or any other tablet, for that matter). The Surface is also the best device in which to introduce Windows 8 and its newfangled touch interface to the world.

For all of these reasons, the Surface seemed like a major step towards the future of computing, and not just Microsoft’s attempt to copy the iPad. Unfortunately, the reality doesn’t live up to the Surface’s no-compromise promise.

After testing out the Surface (starting at $499, $599 with a touch cover) for almost a week, I found a lot to like about Microsoft’s first computer. But the heavy weight of compromise keeps it from living up to its massive potential as a revolutionary device.

The good: Microsoft’s best-designed product ever

The Surface is Microsoft’s first attempt at building its own computer — but you wouldn’t know that at first glance. With its solid construction, attractive lines, and satisfying “thunk” when popping out its kickstand, the Surface feels like the Windows PC equivalent of a luxury car. The Surface has an Apple-esque level of obsessive design. For example, that wonderful kickstand sound didn’t happen by accident; it required a custom hinge.

But Microsoft also manages to make its design noticeably different from Apple’s. After all, a device as important as this shouldn’t be easily mistaken for an iPad.

The Surface’s case is made out of a metal Microsoft calls VaporMG, which is incredibly durable while being three times lighter than aluminum, it says. VaporMG comes from a magnesium alloy, and it feels almost alien in your hands. It’s cool to the touch and will instantly make you forget any plastic Android tablet you’ve ever felt.

Windows 8 made real

In several ways, the Surface is Microsoft’s Windows 8 vision manifested in an actual piece of hardware. Its boxy design and bright keyboard covers evoke Windows 8’s expressive Live Tiles. The Surface eschews the friendly curves of the iPad. It’s all flat shapes and straight lines — it’s all “serious business.” And of course, it sits halfway between tablets and traditional laptops, the same line that Windows 8 straddles.

It’s tough to understand what Microsoft is getting at with Windows 8 when you upgrade your current laptop or desktop. A mouse and keyboard, or an older touchpad, simply doesn’t give you the same experience as a touchscreen. But with the Surface, the entire thought process behind Windows 8 just clicks (yes, like the lovely kickstand).

We had plenty of nice things to say about Windows 8 in our review, but the Surface actually runs a stripped-down version of the OS called Windows RT, which is for devices running mobile ARM processors. The two operating systems look essentially the same, but one big difference with RT is that you can’t run older Windows applications. Given the paucity of apps in the Windows Store, that could prove a problem for many consumers.

Microsoft will also release the Surface Pro in the next few months, which will be heavier and more expensive (no pricing details have been revealed yet), but it will have more horsepower and will run older Windows programs.

Who needs a cover when you can have a keyboard?

While it’s an intriguing device on its own, the Surface feels half-complete without one of the covers, which double as keyboards when unfolded. As a standalone tablet, a great deal is working against the Surface (more on that below). But as a device that can swap between being a tablet and laptop easily, it’s a wonder.

The Touch Cover ($120), which is touch-sensitive and doesn’t have real keys, feels remarkably thin and light at just 3.25 millimeters thick and 0.46 pounds. It’s basically like trying to touch-type on a flat table: It’s tricky at first, but you’ll get the hang of it quickly. Without the Touch Cover, the Surface would simply be yet another me-too tablet. With it, the Surface feels like it comes from the future, which is exactly the emotion Microsoft wants to convey.

You’ll either love or hate the bolder color choices for the Touch Cover — cyan, magenta, and red (which looks more tangerine to me) — but it also has plain white and black variants if you want something subtler. The bright colors make the Surface stand out when sitting next to an iPad equipped with Apple’s Smart Case, something that I’m sure wasn’t accidental.

The Type Cover ($130), on the other hand, feels as good as any laptop’s keyboard I’ve ever used, including the MacBook Air. Since it features real keys, typing on it has less of a learning curve, and it quickly became my preferred Surface cover. It’s a bit thicker than the Touch Cover at 6 millimeters, and it’s a tenth of a pound heavier, but these are minor sacrifices for superior typing. (You also give up some of the futuristic vibe with the Type Cover, but it’s tough to complain when it feels so good.)

Both covers attach to the Surface magnetically with ease — I found it even simpler than attaching the iPad’s Smart Cover, and you hear a satisfying “Click” once the covers attach properly. Both also feature rudimentary touchpads, which was frustrating to use on the Touch Cover and adequate on the Type Cover. For the most part, you’ll be touching the screen to navigate the Surface, but I still found the touchpads necessary to deal with the Windows desktop interface.

Ideal for media

The Surface’s wide 10.6-inch screen is well suited for media. Widescreen movies typically fill the entire screen, and the display’s vibrant color makes photos shine. It’s nowhere near as sharp as the iPad’s Retina Display, but for most consumers it’ll do just fine. The Surface also sounds better than most tablets thanks to surprisingly loud stereo speakers.

At all of its prices, the Surface comes with about twice the memory of the iPad. That gives you plenty more room to store music and movies, in addition to all the media you’ll inevitably stream, as well as whatever the OS and apps take up, which is significant. I tested the 64 GB version of the Surface, and with only a few additional apps installed, I had just 42.3 GB free. The amount of free space will certainly be much lower if you get the 32 GB entry-level model.

You can also expand the Surface’s memory with tiny MicroSDXC cards, which are available in sizes up to 128 GB, and you can swap these in and out while the tablet is running. (The storage cards fit into an ingenious nook underneath the Surface’s kickstand — as if nothing should mar its beautiful exterior.)

Windows head Steven Sinofsky seems surprised by his Surface. (Photo: James Pikover)

The Bad: Compromise abounds

You’d think that with a quad-core Nvidia Tegra 3 processor and 2 GB of RAM, the Surface would be ready to run Windows RT without much of a sweat. That’s true for the most part: navigating around the Start screen, launching apps, and jumping through multiple open programs generally felt silky smooth.

But things begin to slow down once you have too many apps open. And so, the compromises begin.

2 GB of RAM? What is this, 2005?

“Apps don’t slow down Surface, so you don’t need to close them,” Microsoft boasts on the Surface’s website. But in my experience, that wasn’t exactly true. Running several apps at once caused noticeable slowdown when playing games, switching between apps, or dealing with media. I often had to close Windows 8 apps entirely to reclaim some precious memory (within an app, you do this by swiping from the top of the screen to the bottom). Things get even more troublesome if you’re running multiple Office applications and Internet Explorer in the Desktop.

The Surface also has a hard time navigating Flash and video content on the web. It typically stutters a few times before playing a YouTube video, and the video itself usually takes a few seconds before it begins to play smoothly.

For the most part, I blame the Surface’s paltry RAM for the slowdowns. While 2 GB is a healthy amount of memory for most tablets, it’s fairly minimal for Windows PCs. Even with the memory optimizations made for Windows RT, it often feels like the Surface is gasping for breathing room. With multiple Internet Explorer tabs, Word, and several Windows 8 applications running at once, the Surface’s memory usage would often exceed 80 percent. Things could get better as Microsoft further optimizes the Surface’s firmware and Windows RT, but for now I’m left wishing that Microsoft pushed for 4 GB of RAM (like in the Surface Pro).

If anything, the memory limitations reveal exactly who Microsoft is aiming at with the Surface: A typical consumer who wants the convenience of a readily accessible keyboard but who doesn’t really do all that much at once. For geeks and power users, the Surface Pro is where it’s at.

Pretty but awkward

Despite the overall excellence of the Surface’s hardware, I still found some things to be annoying. For one, at 1.5 pounds with a widescreen display, the Surface is almost impossible to use with one hand for very long. I’ve never been a big fan of large tablets, but the Surface feels egregiously awkward in one hand, no matter how you hold it. Instead of being a convenient handheld computer, I mostly rested the Surface on my leg in tablet mode.

And then there’s the kickstand. I love the design, but it’s not very stable when used on your lap or any non-flat surface. I don’t think we should ever have to worry about balancing our computers on our laps — that’s something notebook makers pretty much mastered several years ago.

Slow down there, fast typer

As much as I liked the design and theory behind the Surface’s covers, actually using them to type for prolonged periods was a major headache. Both the Touch and Type keyboards would often miss characters, and sometimes entire words, if I typed too quickly. If I slowed down to about half my typing speed, things generally worked fine.

Apparently, Microsoft is aware of this issue, and I’ve been told a software fix is coming soon. (If it were a hardware issue, the Surface would be doomed.) But it doesn’t make the best first impression for a device that’s supposed to represent the future of computing. Heck, even DOS on a 386 was able to keep up with speedy typing!

Windows RT: A decent, but barren, start

While Windows 8 is getting most of the hype right now, it’s Windows RT that may truly determine Microsoft’s future. It’s the first version of Windows built for a chip architecture outside of x86 processors, so it won’t run on Intel or AMD chips. And due to its lightweight nature, Windows RT could potentially run on devices with very compact and low-power CPUs, which could enable those devices to be even smaller and thinner than the Surface.

But as it stands now, Windows RT still needs to grow quite a bit before I’m satisfied with it. It takes the Surface around 25 seconds to boot to the login screen, compared to about 10 seconds on my Windows 7 desktop and around 8 seconds on my MacBook Air.

And then you’ve got the app problem.

Since Windows 8 and RT are still very young, it has a notable lack of good apps in the Windows Store, especially from major companies like Twitter and Facebook. In comparison, the iPad now has more than 275,000 apps, and it can also run (albeit in an ugly, blown-up screen) every other iOS app.

This will certainly change over time, but for now the Surface’s app deficiency is going to just disappoint and confuse consumers. (It’s also one of the reasons I think this week’s Build developer conference is the most important event Microsoft has ever run.)

Microsoft certainly has its work cut out for it with developers. We heard from Facebook that it’s waiting on Microsoft to build a Windows 8 Facebook app — clearly it’s not a priority for the social networking giant.

What’s truly strange about Windows RT is that, even though it’s dependent on new Windows Store apps, it still features a traditional Windows desktop. So far, you can use Internet Explorer and some touch-friendly Office apps in the desktop environment. But try to install any other Windows application, which I’m sure many consumers will, and you’ll get an error message.

Aside from helping out occasionally with multitasking, the Windows desktop on the Surface mostly feels like an oddity, like a vestigial tail inexplicably forgotten by evolution.

Windows head Steven Sinofsky turned a Surface into a skateboard. (Photo: Sean Ludwig)

The Verdict: Look, adore — but don’t buy (yet)

The Surface may be our first look at what most PCs will look like in a decade, but as it stands today, it’s more like a concept device. If you’ve ever seen a concept car, you’ll get the idea — the Surface is meant to make an impression, but it isn’t yet ready for consumers.

If I have one major takeaway from the Surface, it’s the surprising revelation that I actually like touching its screen when it’s in laptop form. We’re already seeing some Ultrabooks with touchscreens right now, but eventually it’ll be something that all ultraportable computers (including the MacBook Air) will have to support.

Most of you shouldn’t buy this Surface. Wait for the Surface Pro, or if you can, wait for Microsoft’s next Surface RT model. At the very least, wait for this Surface (and its keyboards) to drop in price and get more apps.

It will only get better, and at some point, the Surface may finally evolve into the no-compromise machine it has the potential to be.

I received my Microsoft Surface RT today. My reason for picking one up was fairly specific. While I admire Apple’s ability to define a new category of computing on the IOS platform, I’ve always felt the iPad experience to be a little lacking for my needs.

I’m that guy who’s in his productivity sweet spot with 20 applications, four Chrome windows, each with 15 tabs, switching between them all, copying and pasting like a keyboard gymnast. I definitely leverage multitasking to get work done.

So using my iOS devices has always been a bit of a downshift.

While I first saw the iOS experience as limiting, I’ve grown to see using my Apple devices as an opportunity to focus. My iPad is my eReader/Netflix/Flipbook/email/game appliance, and it does each of these functions very well one at a time. While the opportunity to focus is a good thing, it’s meant carrying around both my iPad for the tablet experience and my MacBook Pro for the full desktop experience.

So with my MacBook getting closer to a replacement, and with this new class of Windows tablet coming to market, I thought this would be a great opportunity to find out if Microsoft’s vision of tablet could be more than a single-task device.

Source: Peter Hunter

My Surface in my kitchen …

Volumes have already been written about the pros and cons of Windows 8.

So I’ll try to avoid critiques of Microsoft’s design choices where they don’t directly help or hurt my ambitions with this device. I do feel the pain of the Metro-learning curve, but I have the fairly real sense it is temporary. I felt similarly frustrated when I first began using OS X after years only using Windows. That went away quickly too

My initial impression of the Surface hardware is good. My main concern is how the device will wear over years as my primary device. The materials in the device seem to be a good balance of quality metals and plastics. The build quality is solid; the finish seems to be scratch resistant. It seems like Microsoft did its homework.

The kickstand is quite thin and light, yet solid. It is nearly invisible when not deployed, and there’s no sense of it flapping around when holding the Surface as a tablet. The tab you use to pop it out is on the left side of the device. Unfortunately, the power connector on the right side feels like a tab. Several times I’ve found myself pushing on the connector when trying to get the kickstand deployed.

I ordered the Surface with the Touch Keyboard, and I have mixed feelings about it. I find it vastly better to type on than touch-screen typing on my iPad, but I do find myself making strange mistakes. I think the very slight sense of touch feedback is something to get used to. Particularly, I found myself making many typos when typing keys with my pinky fingers. It does seem like this will get better with more use.

I didn’t read the screen resolution specs until after I had used it for a bit. The resolution seemed higher than the specs suggest. The screen is bright and clear. I watched a couple shows on Netflix with darker scenes. The screen performed well.

Battery life seems good. It was at about 80 percent when I first started using it. When I set it down six hours later, it was still at around 30 percent.

I did find a flaw with the design, which in hindsight seems quite obvious. If you use a traditional notebook on your lap while carpooling, or on the train, you will not be able to use this device that way. It is not a laptop. The keyboard and trackpad are fairly useless on your lap. Once you remove it from a solid surface the device really becomes more of a traditional tablet. Depending on how you plan to use this device, I could see this being a deal-breaker. I’m not sure yet what the impact of this will be on my use. It seems like a big deal, but when I think about it more closely, I’m not sure how much I type on my Macbook Pro when it’s not on a solid surface. I think I need a bit more time to understand the impact of this one.

The App ecosystem matters, and to nobody’s surprise, the Windows 8 RT app portfolio has some gaps.

For instance, I had difficulty finding the right app to stream my favorite Internet radio station. I ended up just streaming it through the browser. While I’m sure there are armies of developers coding away right now, I have to evaluate the device based on what’s available now. Specifically for me, a Dropbox App would be greatly appreciated.

I’ve had a few “AHA!” moments, where I’ve realized this device is categorically different than my iPad. The first came when I realized it had Bluetooth and could pair with my Logitech Bluetooth mouse. It might be a small thing, but it is something you can’t do, nor would want to do, with an iPad.

The second came while I was trying to switch between apps. Chalk it up to being a Windows 8 novice, but it was frustrating none the less. I realized the keyboard had both an “Alt” key and a “Tab” key. The combination of the two brought a very real sense of familiarity and another reminder that I wasn’t using an iPad.

The third came when I discovered how to split-screen two apps. Having a Skype chat video window open while composing an email was an eye-opening experience. Something as simple as that should be core functionality on any modern tablet.

So that summarizes my initial experience with the Surface RT. Ideally, I’d like to have evaluated this device after using Windows 8 for a few months. I had to separate the Windows 8 learning curve frustrations from the device’s shortcomings.

That said, I see a huge amount of potential and am quite optimistic this device will fill the gap I have between tablet and laptop.

Image credits: Microsoft, Peter Hunter

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A new gadget, a new naughty teardown from the repair gurus at iFixit.

The iFixit team didn’t waste any time tearing apart Microsoft’s new Surface tablet, which hit stores this past Friday. In my early look at the Surface, I found that it had plenty of personality (but some noticeable issues).

Given the inevitable move towards thinner and more tightly sealed computers — something that’s particularly noticeable in tablets — I didn’t have much hope for the Surface to be easily repairable. IFixit gave it a score of 4 (out of 10) on its repairability scale, which is a bit better than the third-gen iPad’s score of 2, but far below the Kindle Fire HD and Nexus 7′s scores of 7 out of 10.

Among the notable repair issues, iFixit found that it took half an hour just to pry off the plastic bezel around the Surface’s camera. Opening up the Surface also breaks a tamper-resistant label inside the unit, which will obviously void your warranty.

IFixit also noted several repair issues with the Surface’s display: They couldn’t remove the keyboard connector without entirely separating it front the display, and the LCD and glass are fused together (and strongly glued to the case).

“You’ll have to use a heat gun and lots of patience to gain access to the glass and LCD,” IFixit wrote.

But at least the Surface’s battery, even though it was glued in, was “way easier” to remove than the iPad’s.

These repair users won’t affect most users, since they won’t be repairing the Surface on their own, and they likely won’t be taking it to some tiny computer repair outfit. With tablets and tightly sealed computers like the MacBook Air, it’s generally easier to just send in a device to the manufacturer for repair.

And posted, naturally, to his 3.3 million followers on Google+.

Which of course, did not happen accidentally. Google is giving us a preview of the company’s big Monday event at which we even more confidently can now predict the Nexus 10 tablet will be unveiled. The big deal with the Nexus 10 — besides that it’s coming to market — is that it is even higher resolution than the retina iPad 3 and iPad4, with 2,560 by 1,600 pixels on its large screen.

As Google+ helpfully informs us, the image is 2,048 by 1,536 pixels, making the 10′s camera at least 3.14 megapixels … coincidentally, also the value of pi (at least to two decimals).

However, since Google+ limits the maximum dimension on uploaded images to 2,048, it’s likely the actual  camera on Google’s new tablet is actually higher quality.

Commenters on Vic’s post are generally happy to see that the Nexus 10 is real, with one, Derek Ross, gently chiding the Google exec:

Vic, you’re such a tease

VentureBeat will be at Google’s big event on the 29th, bringing you all the details of the Nexus 10 and the rumored LG Nexus 4 smartphone.

The event seems to be a fairly hasty Google attempt to respond to Apple’s big product announcements, including the iPad mini, and Microsoft’s Surface.

Another of Gundotra’s vacation photos with the Nexus 10:

From afar, Microsoft’s Surface tablet looks like it means serious business. You won’t question its build quality, and with its straight lines and sharp angles, you (probably) won’t mistake it for an iPad.

It’s a computing device with a personality all its own — something that’s particularly shocking given that this is Microsoft’s first stab at building a computer. From the short time I’ve used it, the Surface feels like the perfect introduction to everything Microsoft is trying to carry out with Windows 8.

But it’s also clear that, until Microsoft attracts more apps to the Windows Store, it’ll be a mere curiosity for most consumers (many of whom are probably trying to get their hands on iPad minis this holiday season).

Today after Microsoft’s Windows 8 launch event, I got my hands on a Surface unit running Windows RT (provided by Microsoft for review) as well as a variety of its cases and accessories.

I’ll admit, the Surface feels plenty awkward the first time you pick it up. Since it features a wide 10.6-inch screen with a 16:9 aspect ratio, it’s a bit of a struggle to hold it in landscape mode with one hand. In portrait mode, it feels like you’re holding a high-tech legal pad.

But once you attach one of the covers and pop out the Surface’s kickstand, Microsoft’s vision becomes clear. As much as Microsoft is selling the Surface as a tablet, it seems most at home on a flat surface (yes, I know, hilarious). I received both the Touch Cover, which is reminiscent of Apple’s iPad Smart Covers with a flat touchable keyboard, and the Type Cover, which is a bit thicker and sports actual keys.

These covers aren’t just a way to protect your new Surface — they’re the entire crux of Microsoft’s plan. Windows 8 isn’t just Microsoft’s tablet strategy, it’s Microsoft’s everything strategy. And the Surface, with its detachable keyboard covers, is trying to be an everything machine.

I’ll need to spend more time with both of the covers before I can fully judge them. But after some initial pecking, I’m definitely a fan of the Type Cover. It’s not much thicker than the Touch variant, and the keys are infinitely better. For consumers who care about typing quickly, it’ll be the obvious choice.

What’s most surprising about the Surface is how solid it feels. Microsoft didn’t cut any corners, and its obsessive design (yes, which feels oddly Apple-like) is evident from every angle. It’s an appropriate companion for Windows 8 — a new type of computer for a new type of operating system.

The strong design, together with the innovative functionality of the covers, gives the Surface a distinct personality from its competition. You’ll definitely notice those brightly colored Touch Covers in the wild. Having personality is important — it’s something that most Android devices lack, and it’s also a big part of Apple’s success with the iPhone and iPad. As our devices become smaller and more personal, we also need to feel an emotional connection with them. The Surface manages that much.

When it comes to the software side of things, I easily synchronized my Gmail account as well as contacts and calendars (a simple process). Moving around the OS feels smooth, though I haven’t had a chance to really overwhelm the Surface with multiple apps. I had one hard crash inside of the New York Times app, which forced me to reboot the Surface (and didn’t show me any error message).

Mostly, I’m surprised that Microsoft is still missing some major app partners — in particular, Twitter and Facebook. Thankfully, FlipToast is a free app available on Windows 8; it aggregates social networks into a single interface. Geeks and power users will figure out ways to survive without their favorite programs and services, but mainstream consumers will likely just be confused. More apps will come, but the lack of important apps right now makes it hard to recommend a Surface at launch.

Check back for my full Surface review next week. For now, take a look at our hands-on pics of the Surface below.

Microsoft chairman and former CEO Bill Gates has joined the company’s marketing campaign to praise Windows 8, Windows Phone 8, and the Surface tablet, and he touts the benefits of all three in a new video.

This Friday, Microsoft will release its Windows 8 operating system and the stellar-looking Surface tablet. Gates says that with Windows 8, Microsoft is bringing touch and camera inputs into the fold without giving up traditional mouse and keyboard support. (Read our roundup of what you need to know about Windows 8.)

“People will be pretty amazed about the energy Microsoft’s putting behind this new wave of products,” Gates said. “We really saved up in terms of knowing this was such an important set of innovations that whether it’s great new applications, ISV engagement, or just plain marketing, this is the big time for us.”

Gates also called the Microsoft Surface tablet “absolutely incredible” and said people can’t appreciate the device without seeing it in person. “You can’t appreciate it without seeing it — people, get to a store and play around with this thing,” Gates said. “The way you put that keyboard on and off, the richness of the swiping that takes the touch interface to a new level, just the beauty of the device — it is absolutely incredible.”

Watch the video above for more.

Consumers looking to pick up Microsoft’s Surface tablet might be in for a long, long wait.

While preorders for the 64 GB and 32GB Touch Cover models of the Surface will be available for the October 26th launch, the same can’t be said for the Touch Cover-less 32 GB model, which has a shipping time of  ”within three weeks.”

While that wait time could mean any number of things, chances are it points to something really promising for Microsoft: The Surface has had enough preorders that the company can’t produce the devices fast enough.

That should naturally remind you of Apple, which is rarely able to meet demand for its devices nowadays. Consider the iPhone 5, which, while announced last month, still has a shipping estimate of 3 to 4 weeks. That’s a long time, though it isn’t deterring anyone from buying the device.

But while long shipping times are bad for those late-to-the-party Surface buyers,  they’re great news for Microsoft, which may actually, perhaps inconceivably, have a hit on its hands with the Surface.

Not so good for Microsoft, however, is that fewer Surface buyers seem interested in the models that come with the Touch Cover. While this could mean that the devices price tags are too steep, it’s also possible that buyers simply want the Touch Cover in a color that isn’t black.

Via CNet

Microsoft Surface pricing is out of the closet, seemingly leaked by Microsoft (and just now confirmed). With a base model at $499 complete with 32GB of storage, and Microsoft’s very cool-in-concept Touch Cover raking an additional $100 out of your pocket, the newest retina iPad is very much in Microsoft’s sights.

Outfit a retina iPad with 32GB of storage, and you’ll be looking at an equivalent $599 number — without a cool type-on cover. Adding Apple’s smart cover — which isn’t smart enough to type on — will add another $50.

But … and I repeat but … the iPad 2 is $399. Granted, it only has 16GB of storage, but it’s a full-fledged tablet with a massive ecosystem of custom-built apps. And the iPad Mini pricing looks to be starting at just $250, which analysts think will compare well to Surface tablets. Again, granted, it’s a 7″ tablet, not a full-size, but it has that ecosystem.

One more point: The retina iPad is just that, retina. It has three times the pixels of the Surface’s 1,366 x 768 screen — and therefore a better picture and visual experience.

The immediate reaction on Twitter seems to be that Surface pricing is too high.

Sadly it looks like I'm out for the new Microsoft Surface, the price is too high for the low end model bit.ly/TYLrLT

—
Ed Buford (@ebuford) October 16, 2012

and …

Price for new MS Surface Tablet leaked. They've priced it too high if they're just trying to get into the market. goo.gl/nIaeC

—
Kuljit Chahal (@KChahal) October 16, 2012

Personally, I think that second tweet is the telling one. Surface pricing is not excessive for the models that Microsoft has revealed — except that the entry-level model does not provide a no-brainer heck-I’ll-give-it-a-shot opportunity. That’s the problem, if there is one — not the pricing for the models that Microsoft has chosen to make.

And let’s be straight-up about the ecosystem. In spite of continuous and good work by Microsoft to build the app, music, and content ecosystem, only one thing will incentivize developers to build apps in the tens of thousands for Surface: users, users, users.

Software engineer Davide Senatore makes this point in a tweet:

#surface... price too high to compete with #devices on the market. This is a big risk... theverge.com/2012/10/16/327…

—
Davide Senatore (@davidesenatore) October 16, 2012

Not everyone agrees that Surface is too costly.

Analyst Patrick Moorhead feels the pricing is not bad, saying that “at $499, Microsoft Surface would drive serious volume even versus an iPad. At $599 with the keyboard, it really is a good value proposition.”

Jack Gold, with Gold and Associates, feels the pricing is “reasonable, but not aggressive,” mostly because Microsoft is still relying on many other hardware partners to also build Windows tablets.

Microsoft is not trying to undercut the market with this. The goal is to seed the market — get reasonable quality devices out there into the hands of consumers to get some momentum going behind Windows 8 on tablets. They are not trying to undercut their supply chain (Acer, HP, Dell, Lenovo, etc.) where the bulk of the device sales will be. But this forces a high profile evaluation of the devices (MSFT still has a good deal of marketing clout). This is the same strategy Google uses/used with Nexus phones and tablets.

I think there is one more critical point here: It’s not just iPad and Apple that Microsoft is competing with here. Microsoft is competing with the extremely strong and more-established Google ecosystem as well (and, related, the Amazon ecosystem built on its own version of Android).

Android tablets are running in the $200-350 range.

Kindle Fires, which Amazon sells as razors to make money on content blades, sell at cost – just $159. The similarly-sized Galaxy Tab2 is just $199 at Amazon.com right now, and the full-sized 10.1″ model is just $349. And Android tablets from no-name manufacturers are selling as low as $85.

It all adds up to a busy, full tablet market with a lot of choice.

Two of those ecosystems, Google’s and Apple’s, are strong, mature ecosystems. A third, Amazon’s, is fairly impressive as well, with more content than Apple’s or Google’s in some areas. The fourth, Microsoft’s, is still relatively nascent, still somewhat lacking in depth and breadth.

Can four content and computing ecosystems live side-by-side? We’re about to find out.

But it would have been a better contest, I think, if Surface came with an entry point of $399.

July 9-10, 2013
San Francisco, CA

Early Bird Tickets on Sale

With pricing and now production numbers, Microsoft’s ambitions for its new Surface tablet are starting to become clear.

Microsoft plans to produce three to five million Surface tablets in the fourth quarter, reports the Wall Street Journal, which cites Asian component suppliers.

Production of the devices began earlier this month, the suppliers said.

Rivaling production numbers for Amazon’s Kindle Fire tablets and Google’s Nexus 7, Microsoft’s numbers are encouraging evidence that the company is taking the Surface launch very seriously. After all, the last thing Microsoft wants is to leave consumer demand unfulfilled.

But while Microsoft is clearly aiming high with its production numbers, it might be a tad too ambitious. After all, Apple is expected to announced its new, smaller iPad Mini next week, and Windows 8 devices from Lenovo, Samsung, and others could steal away potential Surface customers.

Of course, it could also go the other way: Consumers could be so enamored by the Surface that they’ll have no interest in the iPad Mini or whatever Ultrabook-tablet hybrids Lenovo is cooking up. We won’t know until the devices are released, which won’t happen until later this month.

July 9-10, 2013
San Francisco, CA

Early Bird Tickets on Sale

Update: Microsoft has officially announced the Surface RT’s price (no change from what’s below).

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Seemingly accidentally, Microsoft unveiled the pricing for its Surface Windows RT tablets on its online store this morning: The base unit with 32 gigabytes of storage will go for $499, making it the ideal iPad killer, while the 32GB model with a Touch Cover Keyboard will cost $599.

At the high end, Microsoft will offer a 64GB Surface with a Touch Cover for $699. All of the models show October 26 as the shipping date. Microsoft also lists the Touch Cover separately for $119, which features a flat touch keyboard, while the version with a more traditional keyboard costs $129.

Pricing was one of the many key details Microsoft left out when it unveiled the Surface tablets in June, and I’m sure the company wanted to make a bigger deal of having an iPad competitive $499 price. You’ll be able to pre-order a Surface at Microsoft’s site starting at 9 am Pacific today, or you can pick one up at a Microsoft store on October 26.

The Surface RT pricing is surprisingly level-headed for Microsoft, though a part of me wishes the company went the extra mile to price it below $499. Given that Microsoft is starving for tablet market share, it would have made sense to aim for a $399 or $450. Then again, given just how slick the Surface looks, Microsoft may already be losing money on the Surface RT’s $499 price.

We’re still awaiting pricing on the slightly larger Microsoft Surface running Windows 8 Pro, which will be able to run existing Windows programs and sport more powerful hardware (at the cost of being heavier). Since that Surface is basically a full-fledged PC, it’s expected to sell for $800 to $1,000. Windows RT devices, including the Surface, will only be able to run new Windows 8 apps from Microsoft’s app store.

July 9-10, 2013
San Francisco, CA

Early Bird Tickets on Sale

Microsoft has remained silent about the price of its forthcoming Surface tablet, but the company’s CEO Steve Ballmer did recently discuss a price range for the new device.

“If you look at the bulk of the PC market, it would run between, say, probably $300 [and] $700 or $800. … That’s the sweet spot,” Ballmer told the Seattle Times in an interview yesterday.

Previously, there were rumors speculating that the Surface Tablet would retail between $600 and $1,000 for the two different versions. But neither option comes with a built-in 3G/4G wireless connection feature, which Apple uses to justify a higher price for its line of iPads. Even at $800, the Surface will have to offer a pretty amazing experience for consumers to justify buying one.

Ballmer did however dispel the notion that Microsoft would offer a sub $200 tablet, while eating some of the hardware cost in exchange for generating revenue through apps and digital media sales. Ballmer compared the company’s logic for this by saying that he doesn’t think most people believe the iPad to be an expensive device and that any tablet that costs less than an iPad is “chintzier” or cheaper.

Comparing a yet-to-be-released device to the iPad is a pretty bold move for a company that’s never produced its own tablets before. Still, we know that Ballmer is serious about targeting Apple’s iPad rather than the less expensive Kindle Fire and Nexus 7 products.

Photo by James Pikover/VentureBeat

HitPoint Studios is unveiling its Adera puzzle-adventure game that is targeted at what could be a very big platform. The game will debut on computers running Microsoft’s Windows 8 operating system as well as the Microsoft Surface tablets coming this fall.

The game is an episodic, puzzle-adventure title that will take full advantage of features such as multitouch controls, accelerometer (tilt) controls, and Xbox Live for Windows. It is one of a whole slate of games being announced today for the new Microsoft platforms, which are aimed at reviving PC gaming and related tablet play. Microsoft will publish this game which is being developed by Hatfield, Mass.-based HitPoint, said Jim Hawk, producer at Microsoft. It is clearly a sign that Microsoft knows that great games can make or break any new operating system or technology platform.

“With Adera, we created a title with cinema-quality production value that’s totally unprecedented in the puzzle-adventure genre, and our partnership with Microsoft Studios has enabled us to bring a classic casual gaming title like this to the mainstream,” said Aaron St. John, co-founder and CEO of HitPoint Studios. “The extended reach of Microsoft’s Xbox platform along with the development capabilities within Windows 8 enables us to build new, rich games that widespread audiences will truly love to play.”

St. John said in an interview with GamesBeat that he is impressed with the integration of touchscreen computing with Windows 8 and Microsoft Surface. He said it was a good match for what his team wanted to do with Adera, which he said will feature beautiful art (as you can see above in the logo). St. John hinted that the experience for gamers will be similar to that enjoyed by people who played the original Myst, which also had beautiful scenery. Adera is a hidden-object game, where you search through art to find objects hidden in the landscape. Xbox Live will be an integral part of Windows 8 and Surface, and that means that games such as Adera will be more social and viral, right from the beginning.

“We’re doing some creative stuff that has never been done before,” St. John said.

That is very confident talk, but Aaron St. John happens to be the younger brother of longtime game industry player Alex St. John, who helped pioneer Windows games at Microsoft and also has a penchant for delivering big pitches. HitPoint has produced more than 130 games in four years for more than 50 million players on the Android, iOS, Facebook, and PC platforms. Many of the games are branded games or advergames. The biggest HitPoint title to date is The Secrets of Arcelia Island, a hidden-object game adventure game. St. John said Adera has been in the works for more than a year.

“HitPoint’s expertise in creating casual and adventure titles made them a natural choice to help us introduce new gaming experiences to our core audiences,” said Matt Booty, general manager of connected experiences for Microsoft Studios. “Casual gaming has seen astronomical growth over the last several years, but the market is saturated with look-alikes. We’re committed to providing Windows 8 users with high-quality gaming experiences in classic genres as well as those that they might not have seen before.”

Founded in 2008 after a merger between Golden Goose Games and Paul Hake Productions, HitPoint has more than 57 employees and contractors.

July 9-10, 2013
San Francisco, CA

Early Bird Tickets on Sale

It was only a matter of time before Microsoft’s hardware partners began publicly criticizing the Surface tablet, Microsoft’s first stab at building its own computing hardware.

Acer CEO JT Wang is the first PC maker head to voice his displeasure about the Surface, in an interview with the Financial Times yesterday.

“We have said [to Microsoft] think it over,” Wang told the Financial Times. “Think twice. It will create a huge negative impact for the ecosystem, and other brands may take a negative reaction. It is not something you are good at so please think twice.”

Reading between the lines, the true meaning of Wang’s comments is hard to ignore: He’s terrified of the Surface, because it may just prove that Microsoft doesn’t need to rely on fourth-tier manufacturers like Acer. The sentiment isn’t surprising, after all Microsoft basically betrayed its longstanding arrangement with PC makers by announcing the Surface so close to the launch of Windows 8. With the Surface, Microsoft is getting most of the spotlight with Windows 8 computers, instead of its hardware partners.

Campbell Kan, Acer’s personal computing president, also mentioned to the Financial Times that Acer may have to look at alternative software now that Microsoft is in the hardware game. (Of course Acer has no choice, unless it wants to bet the entire company on Linux.)

Last month, we also saw comments from Acer vice president Oliver Ahrens predicting that the Surface will fail. At this point, Acer isn’t even trying to hide that it’s quaking in its boots over the impending Surface launch.

And the company has good reason to be afraid: When was the last time Acer has made a truly compelling device? Acer may be the fourth-largest PC maker in the world (by shipments), but a stroll through Best Buy will show you that it got there by building cheap, low-quality machines. If Microsoft can deliver the Surface at a low price, Acer can kiss much of its business goodbye.

Photo James Pikover/VentureBeat

July 9-10, 2013
San Francisco, CA

Early Bird Tickets on Sale

Microsoft faces an incredible number of risk factors in the next year, including alienating OEM partners with its Surface tablet, the company admitted in its annual report filed with the SEC.

The company is in the midst of a ton of product changes. The next 12 months will see full releases of Windows 8, Office 2013, Windows Phone 8 for smartphones, Xbox 360′s ambitious SmartGlass software, an updated Windows Azure with IaaS support, and more. Along with these big product updates, the company faces a level of competition it hasn’t seen before from Apple, Google, Amazon, and other players. But Microsoft does appear to realize how tough the landscape is, according to the annual report.

Starting on page 14 of the report, Microsoft outlines every risk it can think of over eight pages. Here are five of the biggest risks the company outlines:

Risk 1: As we’ve written before, the Surface tablet could alienate the hell of out of its manufacturing partners. The company writes:

In addition, our Surface devices will compete with products made by our OEM partners, which may affect their commitment to our platform.

Risk 2: We’re beginning to see a world with fewer Windows machines, with people relying increasingly on smartphones and tablets rather than computers. The company writes:

We derive substantial revenue from licenses of Windows operating systems on personal computers. The proliferation of alternative devices and form factors, in particular mobile devices such as smartphones and tablet computers, creates challenges from competing software platforms. These devices compete on multiple bases including price and the perceived utility of the device and its platform. Users may increasingly turn to these devices to perform functions that would have been performed by personal computers in the past. Even if many users view these devices as complementary to a personal computer, the prevalence of these devices may make it more difficult to attract applications developers to our platforms.

Risk 3: The company has been hounded with lawsuits from the U.S. Justice Department and the European Commission, and that probably will continue. Microsoft writes:

We are subject to a variety of claims and lawsuits. Adverse outcomes in some or all of these claims may result in significant monetary damages or injunctive relief that could adversely affect our ability to conduct our business. Although management currently believes resolving all of these matters, individually or in the aggregate, will not have a material adverse impact on our financial statements, the litigation and other claims are subject to inherent uncertainties and management’s view of these matters may change in the future. A material adverse impact on our financial statements also could occur for the period in which the effect of an unfavorable final outcome becomes probable and reasonably estimable.

Risk 4: Microsoft is making huge investments in new products and services that may not make any cash. It writes:

Our growth depends on our ability to create new and higher value product and service offerings. … In June 2012, we announced the Surface line of Microsoft-designed and manufactured devices. We will also continue to invest in new software and hardware products, services, and technologies. … Our degree of success with Windows Phone, for example, will impact our ability to grow our share of the smartphone operating system market. It will also be an important factor in supporting our strategy of delivering value to end users seamlessly over a variety of form factors including PC, phone, and TV device classes. If customers do not perceive our latest offerings as providing significant new functionality or other value, they may reduce their purchases of new software products or upgrades, unfavorably impacting revenue. We may not achieve significant revenue from new product and service investments for a number of years, if at all. Moreover, new products and services may not be profitable, and even if they are profitable, operating margins for new products and businesses may not be as high as the margins we have experienced historically.

Risk 5: It’s getting increasingly hard to attract talented employees, especially in light of tight immigration laws. (This is a problem for most U.S. tech companies today.) Microsoft writes:

Our business is based on successfully attracting and retaining talented employees. The market for highly skilled workers and leaders in our industry is extremely competitive. We are limited in our ability to recruit internationally by restrictive domestic immigration laws. If we are less successful in our recruiting efforts, or if we are unable to retain key employees, our ability to develop and deliver successful products and services may be adversely affected. Effective succession planning is also important to our long-term success. Failure to ensure effective transfer of knowledge and smooth transitions involving key employees could hinder our strategic planning and execution.

What do you think is Microsoft’s biggest risk during the next year?

Photo: VentureBeat

Mark your calendars folks, Microsoft’s Windows head Steven Sinofsky just announced that Windows 8 will officially be available on October 26th, 2012.

Sinofsky made the announcement at Microsoft’s annual sales meeting today. Microsoft previously hinted that Windows 8 would be released in late October, but it’s good to finally have specifics.

Current Windows users will be able to upgrade to Windows 8 for just $40 with a digital download, or $70 in a boxed update available in stores. In a sign that Microsoft is aiming for clarity with Windows 8, it’s rumored that Microsoft is dropping the confusing “full retail” box version of the OS.

If you can’t tell by our extensive Windows 8 coverage, we’re excited to see where Microsoft goes with Windows 8. It’s obvious that Microsoft is trying to make up for lost ground by making the OS tablet-ready, but the more we see from Windows 8, and the more we hear about Microsoft’s Surface tablet (check out our extensive hands-on), it seems that Microsoft is attempting a longer play with this OS than it has with past releases.

Windows 8 is a complete reinvention of Windows as we know it. And while that will certainly lead to lots of complaints from consumers who can’t find their Start button, it sets Microsoft up to rule the post-post PC era, where all of our computers may resemble the Surface more than they do traditional laptops today.

In recent Windows 8 news, Intel CEO Paul Otellini said there are currently 20 Windows 8 tablets in the works, and we reported on how common sense (imagine that) is the key to Microsoft’s Windows 8 keyboard design.

Photo: Devindra Hardawar/VentureBeat

July 9-10, 2013
San Francisco, CA

Early Bird Tickets on Sale

We’ve seen a ton of reactions to Microsoft’s Surface tablet, but one group of companies has remained fairly mute — Microsoft’s hardware partners.

Acer, the world’s fourth-largest PC vendor, is breaking that silence.

“I don’t think it will be successful because you cannot be a hardware player with two products,” Acer vice president Oliver Ahrens told Reuters.

Ahrens’ comments mark the first time that a hardware partner has publicly criticized Microsoft’s latest strategy. Acer’s distaste may be justified, if not a bit resentful, given the rumors that Microsoft didn’t warn its hardware partners of its tablet plans.

He points a finger at Microsoft saying the company is emulating Apple’s hardware strategy. That is, Apple controls the hardware and software, giving it complete reign over both platform direction and profits.

But Ahrens doesn’t believe Apple’s strategy will work for Microsoft. Unlike Apple, what Microsoft creates affects the direction of over two dozen other hardware companies.

“Microsoft is a component of a PC system,” he said. “A very important component but still a component.”

Instead, Ahrens would like to see Microsoft focus on the Windows 8 user experience and leave the hardware creation to its hardware partners.

“I worry that this will lead into a defocus internally for Microsoft, and then we have to suffer because we are working with their products,” he said.

Microsoft has a mixed record with hardware products thus far, and while the company scored a major victory with the Xbox 360, products like the Zune and Kin were less successful. But the Surface tablet is another matter entirely. It puts Microsoft in direct competition with its hardware partners, which may be why Ahrens is speaking up at all.

Photo: Failing grade/Shutterstock

July 9-10, 2013
San Francisco, CA

Early Bird Tickets on Sale

Microsoft’s recently announced Surface tablet may only be available with Wi-Fi connectivity when it launches later this year, according to a Bloomberg report that cites  unnamed sources familiar with the matter.

The Surface already faces heavy competition from Apple’s iPad and Android-based tablets from Samsung and Motorola, all of which have pricier 3G/4G-enabled models in addition to Wi-Fi. If Bloomberg’s report is correct, then Microsoft likely decided it wasn’t worth trying to compete with the high-end level devices.

That’s probably a very smart move for Microsoft’s first-generation tablet. While plenty of people may purchase a 3G/4G-enabled iPad, studies have shown that they don’t take advantage of it — regardless of if they pay the extra monthly data bill to a wireless carrier. A mere six percent of all data usage on iPads came from cellular data, while Wi-Fi data accounted for 89.3 percent, according to a Localytics report released in March. That said, anyone thinking of buying a Surface isn’t going to be put off by the lack of 3G/4G functionality.

But there could be other reasons Microsoft decided against a 3G/4G Surface model. First off, it would have had to negotiate with wireless carriers prior to the announcement, which would have increased the the chances that news of the device would have leaked. That’s a minor factor, because if partnering with carriers on Surface data plans was crucial to the company’s strategy, it wouldn’t have paused. The more likely explanation is that the low-end model Surface’s retail price is already higher than the competition.

Microsoft didn’t announce the Surface’s retail prices during its launch event earlier this week. Yet, TheNextWeb is reporting that pricing will range from $599 for the low-end 32GB Windows RT model to a whopping $999 for the Windows 8 Pro model. For that kind of money, shoppers will be looking at spec sheets to determine if it’s worth the price when there are cheaper options out there.

Let’s start with the low end. Samsung’s 10-inch Galaxy Tab 2 is $399, and Apple’s least expensive tablet is the $399 Wi-Fi only 16GB iPad 2, which doesn’t have the gorgeous Retina Display or optimum hardware inside. If you want a Surface, you’ll already have to justify spending $200 more. And remember how everyone was in love with the Surface’s seamless integration with Windows 8 desktops earlier in the week? Well, these consumers probably won’t have a Windows 8 PC, so that’s not really a selling point. Apple’s Wi-Fi only iPad 3 runs $599, which is comparable to the 32GB Surface in price, but the Surface lacks the pretty Retina Display.

Now let’s turn to the high-end Wi-Fi only Surface for $999, which could potentially face competition from lower-priced, super portable Ultrabooks. There are a few advantages to having a tablet, sure. But how many shoppers will go with the unknown, more expensive option when presented with the choice between a $999 Surface or a $799 -$899 Ultrabook.

Do you think the Microsoft Surface will face tougher competition because of the rumored $599/$999 retail prices and lack of 3G/4G data? Let us know in the comments.

Design is determining the winners in everything mobile. The most successful players are focusing on one thing: How to make products, services, and devices as compelling and delightful as possible – visually, and experientially. MobileBeat 2012, July 10-11 in San Francisco , is assembling the most elite minds to debate how UI/UX is transforming every aspect of the mobile economy, and where the opportunities lie. Register here.

July 9-10, 2013
San Francisco, CA

Early Bird Tickets on Sale

Microsoft didn’t bother giving its long list of hardware partners much of a heads up on the recently announced Microsoft Surface tablet, according to Reuters.

The immediate implications of Microsoft’s own tablet is that it brings the tech giant into direct competition with many of its long-time hardware partners,  including Dell, Acer, Asus, Hewlett-Packard, and others. Additionally, many of these partners only found out about the new tablet days before it was announced.

The earliest Microsoft would have notified anyone outside the company about the Surface tablet would have been last Friday, according to the Reuters report. Microsoft claims to have made a round of phone calls to others with very vague details about the announcement, careful not to reveal the official name of the device or its specifications. Both Acer and Asus told Reuters they didn’t receive prior word of the Surface, while Dell, HP, and Lenovo declined to comment on the matter.

Over the last month many of the executives of these hardware companies were probably on the phone discussing licensing deals and future plans with Microsoft, only to find out about its shiny new tablet competitor along with the rest of the world on Monday. Such news might have caused some of those partners to cancel planned tablet launches to avoid having to go head-to-head with the new device.

It’s understandable, though, why Microsoft felt the need to keep its Surface tablet a secret all the way up until the end. First of all, the secrecy ensured that word of the device wouldn’t leak and undercut the big announcement. For Apple, stopping leaks has become all but impossible, but Microsoft was easily able to maneuver without showing all of its cards. The Surface’s most direct competitor is obviously Apple’s iPad, as the Surface tries to improve on all of the iPad’s shortcomings. It has a full keyboard and trackpad, a smart cover, a sleek design, and its operating system is fully integrated with Windows 8 desktop PCs. It’s possible these details wouldn’t have changed Apple’s strategy, but they might have.

We’ll find out exactly how betrayed Microsoft’s hardware partners feel after the Surface’s retail price is announced. If the price in line with Samsung’s Galaxy Tab and Apple’s iPad ($500 – $700), it would certainly send out some negative vibes, especially to hardware partners with a line of ultrabook laptop PCs.

Hulk image courtesy of Marvel Entertainment

Design is determining the winners in everything mobile. The most successful players are focusing on one thing: How to make products, services, and devices as compelling and delightful as possible – visually, and experientially. MobileBeat 2012, July 10-11 in San Francisco , is assembling the most elite minds to debate how UI/UX is transforming every aspect of the mobile economy, and where the opportunities lie. Register here.