CES 2009

LAS VEGAS--With my time at the Consumer Electronics Show having drawn to a close, here's a roundup of my observations from the show:

Sign that the economy used to be good
My Sin City accommodations included dual 42-inch flat screen TVs, plus another small LCD screen in the bathroom.

Sign that the economy has tanked
The only reason that spot was for rent (and could be had for as little as $159 a night) is that it was a condo that didn't sell.

Sign No. 2 that the economy has tanked
There were $5 blackjack tables at the Palms in the evening. (Last year it was hard to find a table with less than a $20 minimum.)

Weirdest mix of Silicon Valley and Las Vegas I spotted this year
The giant eBay slot machine I saw as I wound my way through the Venetian casino.

Less swag, less sushi
Two other visible indicators that things aren't so hot: Both swag and sushi were far less present at the show, notes colleague Rafe Needleman.

Ballmer talks to CNET
It took a bit to get the video up (there's a lot of video being shot and streamed over at the CNET stage). But it's worth a look to hear Steve Ballmer talking about the economy and Windows 7.

Other random CES observances? Feel free to send them my way...

Microsoft CEO Steve Ballmer delivers the CES keynote speech Wednesday.

(Credit: Corinne Schulze/CNET Networks)

LAS VEGAS--Microsoft CEO Steve Ballmer arrived at the Consumer Electronics Show with his usual optimism, but he also brings a clear sense of reality: The tech industry is in for some rough times.

"The fact of the matter is, this is not a downturn, this is a bit of a reset. Those are quite different and we're trying to really suss through what we think that means for us," Ballmer said in an interview here with CNET News Thursday, a day after delivering the keynote address at the conference.

Ballmer talked about what the "reset" will mean for Microsoft, as well as lessons learned from Vista and Microsoft's move to put Office on the Web. When it comes to what worries him most, most days it's still Google, although he concedes he has had to spend more time recently on economic issues and making sure Microsoft makes the adjustments it needs to. He wouldn't go into detail on what (and who) Microsoft plans to cut, but it is clear that some changes are coming.

The following is an edited version of that interview:

CNET News: Obviously, Microsoft didn't necessarily get everything it might have hoped for in terms of the critical response for Vista. What are you guys planning to do differently with Windows 7?

Ballmer: Well, I think we made some choices in Vista to improve security at the kind of expense, if you will, of compatibility. With Windows 7, we're able to build compatibly off of Vista and really sort of just tune, if you will, the user interface, the performance, and at the end of the day, it'll be what the users think of the product that we're building, and we'll start getting beta feedback this week.

Q: How hard are you pushing the team to get Windows 7 out this year?

Ballmer: I'm not pushing the team hard, the team is pushing itself. They set some goals and objectives and of course we'll ship the product when it's--as I said last night--both right and ready and when we know when that is, we'll share that.

CES has officially begun and we discuss a slew of offerings from the show floor, as well as the Steve Ballmer keynote. Also, Tom is offered the chance to record his voice for TomTom GPS devices. That's a lot of Tom!

EPISODE 887

Ballmer Keynote
http://ces.cnet.com/8301-19167_1-10131585-100.html
http://arstechnica.com/articles/culture/ces2009-microsoft-keynote.ars

Windows 7 goes Beta this Friday
http://news.cnet.com/8301-13860_3-10135791-56.html
http://news.cnet.com/8301-10805_3-10136418-75.html

Windows 7 might not come in '09
http://news.cnet.com/8301-13860_3-10135943-56.html

CES Press conference roundup:
Samsung: super thin OLED
http://ces.cnet.com/8301-19167_1-10135532-100.html

Vizio takes the cover off Connected HDTV: Netflix, Blockbuster, Amazon, Yahoo! and more
http://www.engadget.com/2009/01/07/vizio-takes-the-cover-off-connected-hdtv-netflix-blockbuster/

Yahoo! recaps a day of setting the Internet-on-TV movement on fire with Widgets
http://www.engadget.com/2009/01/08/yahoo-recaps-a-day-of-setting-the-internet-on-tv-movement-on-fi/

Wall-mountable Blu-Ray player
http://ces.cnet.com/8301-19167_1-10134004-100.html

Audiovox, PlayStation 2 roll out
http://ces.cnet.com/8301-19167_1-10135464-100.html

Acoustic Research Harmony killers
http://ces.cnet.com/8301-19167_1-10133953-100.html

LG’s 240Hz LCDs flash backlights really fast
http://ces.cnet.com/8301-19167_1-10135326-100.html
http://ces.cnet.com/8301-19167_1-10135175-100.html

LG to implement noise-canceling in many of its phones
http://ces.cnet.com/8301-19167_1-10134765-100.html

The Sony P-series Lifestyle PC: Just don’t call it a Netbook
http://ces.cnet.com/8301-19167_1-10131906-100.html

OQO launches world’s smallest Vista PC with OLED screen
http://arstechnica.com/news.ars/post/20090107-oqo-launches-worlds-smallest-vista-pc-with-oled-screen-see-notes.html

Pols hit panic button as DTV coupon program goes broke
http://arstechnica.com/news.ars/post/20090107-pols-hit-panic-button-as-dtv-coupon-program-goes-broke.html

New energy efficiency rules for TVs sold in California
http://news.slashdot.org/article.pl?sid=09%2F01%2F07%2F1946223

E-MAIL
Hey Tom, Molly, and Justin,

I was listening to show 886, and something caught my attention when
Natali was talking about the Giffen good. She said that when demand
increases, price increases when talking about high-priced technology
products. What she was actually referring to is called a Veblen good;
a Giffen good is when the price of an inferior good, a good that low-
income people generally prefer (ramen, bread, etc), rises and those
low-income people end up buying more of that good. A Veblen good is
like a Giffen good, but Veblen goods are generally luxury goods, such
as that new 17-inch MacBook Pro or a Lamborghini, etc. People buy
these Veblen goods at higher prices because it is considered to be a
mark of your financial status.

Sorry for such a long email, feel free to truncate it however you
wish, just wanted to clear that up.

Love the show, keep it up!
Daniel Byon

***********

Hey jamoto,

In Replyness to Daniels Email from Wednesday, I am also a UK listener and would like to say that the BBC does indeed broadcast their tv shows live on the internet. To clarify, the BBC iplayer is where viewers can watch shows from up to 7 days in the past and they also have a bbc watch live service which at this very moment I am watching live tv on the internet and on my terrestrial tv. This was also in place last year so Tom, you do get another correct prediction from 2008.

Chris Hisgrove

***********

Hi Buzz crew,

Tom, did I heard correctly in episode 884 that you'd love to get your voice on a TomTom? That's great news!
An even better news is that you don't even have to license your voice to us. You just have to record a few voice commands, convert them in a TomTom format and publish yourself on our TomTom HOME platform where Buzz-fans from all over the world can download it for free and put it on their TomTom. I'd sure be one of them!

It's a rather easy process for geeks like us and I'd be very happy to assist.

All the best,
Jeff from TomTom and long time listener

PS: Love the show

***********

Hey Buzz Crew,

Hope your enjoying CES. I’m stuck in snow snow and more snow…

I was listening to yesterday’s show (1/7) where you talked about a 10
meg max download over 3G for iTunes on the iPhone. While this is
true, I just go to your www and download the mp3. This works fine, so
I’m not sure why AT&T doesn’t block this then?!?

- Bob, the Nuclear Engineer

LAS VEGAS--With Bill Gates now a Microsoft part-timer, company CEO Steve Ballmer is filling in at this year's opening keynote for the Consumer Electronics Show. We're bringing you live coverage of his speech, which started at about 6:30 p.m. PST. Windows 7 is likely to be the centerpiece of Ballmer's discussion. Another piece of his keynote--a deal with Verizon Wireless--leaked out earlier in the day Wednesday. It's a five-year pact that will see Microsoft's search show up on all of the carriers' phones.

Steve Ballmer at CES

(Credit: Corinne Schulze/CNET Networks)

6:28 p.m.: Waiting for Ballmer, some very loud rappers just finished their set.

6:30 p.m.: And here he is...Well, Gary Shapiro, the head of the consumer electronics association

6:32 p.m.: Shapiro is still talking, but the embargo has lifted, so you can check out all of the news here.

6:33 p.m.: Also, I have a story here from an interview I did with Windows executive Bill Veghte. The key takeaway: Microsoft is still hoping to get Windows 7 out in time for the holidays, but it has told PC makers it could still be this year or early next year. Microsoft has said it will be out by the third anniversary of Vista's January 2007 launch.

6:34 p.m.: Ballmer's not out. There's video, but so far it's not the usual funny video. It's shots of Windows and Windows Live.

6:36 p.m.: Now Ballmer's out. Red sweater and blue shirt, slacks, not that his wardrobe is a big deal.

6:37 p.m.: "So this is CES," Ballmer said as he took the stage, noting that he is taking the reins from Gates. "Bill is now devoting most of his time to helping people around the world."

6:38 p.m.: Ballmer said he got a series of messages from an "eclectic group" of people today. Showing fake IMs from Illinois Gov. Rod Blagojevich, Treasure Secretary Henry Paulson, Yahoo CEO Jerry Yang, and others.

6:39 p.m.: Yang wanted to know why Ballmer keeps ignoring his friend request on Facebook, Ballmer said. Paulson, meanwhile, asked for a copy of Microsoft Money, according to the IM shown on-stage.

6:41 p.m.: Ballmer's now talking about Microsoft's focus on entertainment convergence, the so-called three screens: PC, TV, and phone. "Now it's no longer just about the desktop but really about a broader vision," he said.

6:44 p.m.: The TV is the oldest of the three screens, but in many ways the least evolved, he said, though that is rapidly changing. The boundary between the TV and the PC will disappear, he said.

The second area of change, he said, centers on how we interact with all of these devices. The computer will be able to hear you and see you. Speech gestures and handwriting will become a normal way of how we interact. We will still use a keyboard and a mouse when it makes sense.

6:46 p.m.: Ballmer said that Windows is poised to play a role not just on the phone, but also on the Web and on phones. "Windows has become the language that over a billion people speak around the world."

6:48 p.m.: They are showing a video with the latest Windows PCs and Windows Mobile phones.

6:50 p.m.: Subtle dig at Apple: "At this time economically when people are struggling to make every dollar count" the choice that offers the most power and most value for the money is a PC, Ballmer said.

6:52 p.m.: Now shifting to Windows 7. "We are on track to deliver the best version of Windows ever. We are putting in all the right ingredients...and working hard to get it right and to get it ready."

Windows 7 should boot more quickly, have better battery life, and not pop up as many alerts, he said.

"We are releasing the beta of Windows 7," he said, to a smattering of applause.

Windows 7 beta will be released

(Credit: Corinne Schulze/CNET Networks)

6:53 p.m.: "I encourage you all to get out and download it," he said. Now he's talking about Windows Live.

6:54 p.m.: Three big announcements on Windows Live: Windows Live Messenger, Windows Live Photo Gallery, and Windows Live Mail. It's final, it's free and it works on Windows XP, Windows Vista, and Windows 7 beta.

6:55 p.m.: Also the Facebook deal, which will allow people to have their Windows Live network notified when they post updates or photos to Facebook.

Microsoft and Verizon announced a mobile search deal Tuesday.

(Credit: Corinne Schulze/CNET Networks)

6:56 p.m.: Third are distribution deals with both Dell and Verizon Wireless. (The Verizon deal leaked out earlier Wednesday, but he didn't pull a Steve Jobs and strip out mention of them from his speech)

6:57 p.m.: Now getting a demo of Windows 7 as well as the new Windows Live and some Windows Mobile stuff.

6:59 p.m.: This is the eye candy portion of the talk, with Microsoft showing off the improved taskbar for managing multiple windows as well as a button that clears the screen of all open windows. It's the same stuff shown at the PDC in October.

7:00 p.m.: Those expecting some secret new features of Windows 7 to show up in the beta will be disappointed. It's basically the stuff that was in the pre-beta along with the user interface stuff that was shown at the PDC.

7:01 p.m.: Now they are showing off the "Homegroup" feature designed to make home networking easier to set up and also more intuitive. (The catch: all the PCs involved have to be Windows 7 machines in order for Homegroup to work.)

7:02 p.m.: Another Windows 7 feature, called "Play To" lets users send music and other media to an Xbox, a Roku box, or other devices on a home network.

7:03 p.m.: Now they are showing multitouch using a touchscreen to navigate through a 3D map of Manhattan. "We built touch into the DNA of Windows 7," said Charlotte Jones, a group product manager who is doing the Windows demos.

Touchscreen mapping demo

(Credit: Corinne Schulze/CNET Networks)

7:04 p.m.: For those who were at PDC--or read about it--there's not a lot new here. The only new thing so far is that it has reached beta.

7:05 p.m.: Windows Mobile demo also not new. It's the version of Internet Explorer 6 for phones. The big deal is that, unlike the iPhone's Safari browser, it can play Flash content. The code was finalized late last year. But it will start showing up in phones this year.

7:09 p.m.: Jones is now showing how Microsoft is trying to make the Windows Live home page a sort of network of social networks, showing the updates that people make both within Windows Live as well as in other places like Twitter, Flickr, and now Facebook.

7:14 p.m.: There's a band now on stage. Apparently called Tripod. According to Wikipedia, they are an Australian musical comedy act.

7:15 p.m.: They are singing about being ready to be with their girlfriend just as soon as they finish their game. "Can you move a little to the left? I can't see the TV."

Sadly, it's probably the best part of the keynote so far--and getting the most audience reaction.

Robbie Bach, president of Microsoft's Entertainment and Devices unit.

(Credit: Corinne Schulze/CNET Networks)

7:16 p.m.: Now taking the stage, Microsoft Entertainment and Devices unit President Robbie Bach.

He mentions that Ford is introducing a new version of its Sync in-car entertainment.

7:19 p.m.: Zune has also had a great year, Bach said. There are 2 million people on Zune social. He's also touting the innovations on subscriptions, but no numbers as usual (late last year, Microsoft conceded subscriptions were lagging expectations).

7:20 p.m.: He also didn't give an update on Zune unit sales. Now he's talking about IPTV.

Bach talks about a new feature that SingTel (a Singapore telecom firm) is adopting that essentially lets you go back in time to select a program that previously aired but wasn't recorded.

7:21 p.m.: It will be up to carriers to decide how far back customers will be able to go back to get a show on-demand.

7:22 p.m.: Now he's talking Xbox, noting that the company is in the key selling period in terms of unit sales, as its price has reached below $200. He promised "accelerating momentum."

He gets some applause as he talks about the two new Halo products coming--Halo Wars and Halo 3 ODST.

7:23 p.m.: Halo Wars is a strategy game and due out February 28, with a demo that will be available February 5. Halo 3 ODST is out this fall, action-style game with new characters and scenarios.

7:26 p.m.: Demoing Xbox Live Primetime, a place for live interaction. Demo is 1 vs. 100, an Xbox game show where people can win real prizes. Microsoft talked about it briefly at E3, but this is the first demo, I believe.

Demoing Xbox Live Primetime.

(Credit: Corinne Schulze/CNET Networks)

7:30 p.m.: First glitch of the night: Robbie's Xbox controller wasn't working as he tried to navigate his Netflix queue. Working now.

7:33 p.m.: Talks about the popularity of music games. 60 millon tracks downloaded for games like Rock Band and Guitar Hero via Xbox Live.

7:34 p.m.: Demoing Kodu, a tool from Microsoft Research that allows users to create games without having to know a traditional programming language.

Kodu

(Credit: Corinne Schulze/CNET Networks)

7:35 p.m.: Kodu was formerly known as Boku, though a Google search for that name turns up some extremely not-safe-for-kids images.

7:36 p.m.: Microsoft had said it planned to change the name. Bach has a kid on stage showing how she created a game using the tool.

7:39 p.m.: The 12-year-old beats Bach handily at the game she created. Ballmer comes back on stage. "If anyone thinks he threw that game on purpose, that would be wrong."

Robbie Bach and Sparrow

(Credit: Corinne Schulze/CNET Networks)

7:42 p.m.: Should be wrapping up soon. Microsoft Research is showing some stuff from the labs, including a digital anatomy textbook.

7:44 p.m.: Showing a simulation of caffeine and your brain. Man, i could use a little of that right now.

7:48 p.m.: She shows a flexible display less than 1mm thick in color. This is pretty cool.

Microsoft Research

(Credit: Corinne Schulze/CNET Networks)

And, she's done.

7:49 p.m.: "Despite the economy, I hope you will all agree with me that our industry has an incredible, incredible opportunity ahead of us," Ballmer said, in wrapping up.

End of keynote.

7:50 p.m.: Tripod comes back for one more song.

CNET News' Marguerite Reardon contributed to this report.

LAS VEGAS--As he takes the stage Wednesday, Steve Ballmer has a mighty big task ahead of him.

Not only is he taking over Consumer Electronics Show keynote duties from Bill Gates, he is also aiming to convince the tech world that Microsoft is serious about defending its turf on the PC as well as making headway on the Web, television and phone. Oh yeah, and then there's that whole economy-melting-down thing.

Ballmer hasn't arrived in Sin City empty handed, however. In perhaps the biggest announcement of the night, he will announce Microsoft is ready with a beta version of Windows 7 and he will show off some of its key consumer features.

Microsoft will also announce new deals for Windows Live that will see Microsoft's search engine become the default on PCs from Dell as well as touting a deal with Verizon Wireless that leaked earlier in the day. The company is also counting on two Halo game releases this year to help keep the Xbox 360 going in the right direction.

But Microsoft faces considerable competition in each of the areas Ballmer is discussing. On the PC front, a resurgent Apple has increased its share. In search, Google continues to dominate. In the phone market, Apple's iPhone has grabbed much of the spotlight, not to mention significant market share. Google also has joined the fray, while longtime competitors such as Research in Motion and Palm are trying to maintain their slices of the pie as well.

And then, of course, there's the substantial financial headwind. Ballmer is expected to express his usual optimism--despite the global financial outlook--and discuss the company's commitment to research and development in both good times and bad. That said, Microsoft is clearly not immune from the problems that led Intel Wednesday to announce that fourth-quarter revenues were down 23 percent from the same quarter a year ago.

On the PC side, Microsoft is looking to turn the page from Vista to its successor, Windows 7. Microsoft isn't talking about any new features of Windows 7, saying it talked about all of the key features at the Professional Developer Conference last year. Instead, it will attempt to demonstrate what features like improved home networking really mean for the average household.

As for the beta of Windows 7, Microsoft said it will be immediately available for technical beta testers and those in Microsoft's TechNet and MSDN developer programs and will be made publicly available on Friday. The company still isn't officially committing to a final release in time for this year's holiday season, although the company is clearly still aiming for that.

Ballmer will also discuss Windows Live. In addition to the global PC deal with Dell and the five year U.S. deal with Verizon Wireless, Microsoft has expanded its relationship with Facebook to allow users to see within their Windows Live homepage certain of their buddies' Facebook updates. The company is also stripping the beta tag off many of its Web-based and downloadable Windows Live products.

On the phone side, Ballmer is expected to talk about the improved mobile browser Microsoft released at the end of last year, but the company is not talking yet about when to expect a serious upgrade to the Windows Mobile operating system, which has grown rather long in the tooth. Microsoft has made reference to an interim Windows 6.5 release that could serve as a bridge until the more significant overhaul of the operating system--Windows Mobile 7--makes its delayed debut.

On the automotive side, Microsoft is announcing a new version of its Ford Sync entertainment system that uses voice recognition software from its Tellme acquisition.

While that's the main news of the show, check out our live blog to get some live quotes, our commentary, as well as updates on any celebrity guests or funny videos that are often the hallmark of Microsoft's keynotes.

See also: Windows 7 beta: First impressions

Microsoft will have a bunch of stuff to show at the Consumer Electronics Show in January, but a rumored ZunePhone won't be one of them, according to sources familiar with the company's plans.

Instead, much of CEO Steve Ballmer's focus will be on talking about Windows 7 from a consumer perspective. Microsoft is pushing to have Windows 7 done in time for the holiday 2009 shopping season, so that means this CES is Ballmer's best stage to tout its benefits.

While the desktop operating system will be front and center, sources say to expect Ballmer to talk about how Windows is moving beyond the PC and into a world of PC, Web, and phone, a refrain we also heard a lot from Ray Ozzie at November's Professional Developers Conference, where the world also got its first good look at Windows 7.

On the phone front, Microsoft may not have a ZunePhone, but it is going ahead with several other strategies--pushing phone makers to develop phones based on Windows Mobile, developing Windows Live services for phones running a variety of operating systems as well as a number of new "premium mobile services" based on its Danger acquisition.

The company has also talked about extending its Zune service beyond the company's own dedicated player and mentioned the phone as a logical place to access the service. We may hear more about timing of this at CES, I'm told. In an October interview with CIO UK, Ballmer mentioned the possibility of accessing the Zune service on Windows Mobile phones.

The Xbox will certainly get its due as well during Ballmer's keynote speech and, as is typically the case, expect Microsoft to announce some new partnerships at the show. A funny video and celebrity guest are usually safe bets as well.

So that's what I've heard, but if tipsters know any more, I'm all ears.