Microsoft seeks EU approval for Nokia acquisition

Eye on the prize: Microsoft wants Nokia's smartphone and phone-making unit.

(Credit: Sarah Tew/CNET)

Microsoft has asked the European Union to approve its bid to buy Nokia for $7.2 billion as the software giant continues its push into devices and services.
The 28-member state bloc's antitrust regulators will now decide whether or not the company's bid breaches the EU's rules on competition.
Because Nokia is a European-based company, antitrust regulators will critique the takeover bid to ensure the competition is not left at a disadvantage.
Authorities can block the deal, or fine the companies heavily.
According to Reuters, the Commission said it would decide by December 4 whether to clear the acquisition. It can extend the review by a further 10 business days if Microsoft offers concessions to allay concerns.
Over in India, authorities have already approved the deal, which kicks another regulatory hurdle out the way. According to Indian media, authorities said the deal is "not likely to have appreciable adverse effect on competition."
The bid for Microsoft to acquire Nokia will see the Redmond, Wash.-based software giant become a fully fledged phone maker, years after it evolved its Windows Mobile platform into Windows Phone.
Microsoft will absorb the company's smart devices unit, which develops the Lumia array of smartphones, allowing Microsoft to directly control both the hardware and software ecosystem.
The deal is expected to be completed around the first quarter of 2014, and will also be subject to US regulators.
Meanwhile, Nokia will hold a shareholders meeting on November 19 to approve the sale of the company's devices and services to Microsoft.

Microsoft shows off Xbox One in action in new promo

The Xbox One dashboard.

(Credit: Screenshot by Lance Whitney/CNET)

Microsoft is touting the Xbox One's dashboard, app switching, and voice control all in a new video spot.
Playing on the Meet Xbox One Web page, the spot opens with someone activating the console by voice. The user, Archie Earnest, then manuevers around the dashboard, launches the Pacific Rim game, segues to the Activity Feed, revs up the Titanfall game, records and shares the gameplay, watches TV, snaps Internet Explorer to the screen, and finally answers a Skype call before turning off the Xbox by voice.
The voice commands are all perfectly understood, the responses are quick, and the app switching never lags. I'm not sure a real-world performance would yield the same precise results. But Xbox One owners will be able to give it a whirl themselves when the console goes on sale on November 22.
(Via Engadget)

Microsoft's Surface dock on sale in limited quantities

 

(Credit: Microsoft)

 

When it launched its second-generation Surface tablets and new peripherals, Microsoft told users not to expect the new Surface Power Cover or docking station until early 2014.
Something seemingly changed. The docking station is available now. (I'm not sure how long it will be, or how much stock is available, but if you really want it, hurry.)
I was alerted to the dock's early availability by reader Aaron Craig, a system administrator for risk-management company Bickmore. He ordered four Surface docking stations on October 22 and had them delivered on October 24. (He sent me pictures to prove it.)
I just checked on Surface.com and Microsoft's online store site and also see the docking stations are available for order, with the option for next-day delivery.
I've asked Microsoft if this is just a temporary situation or if the docks arrived earlier than expected. No word back so far.
Update: Windows SuperSite's Paul Thurrott told me that Microsoft execs said docking stations would be available ahead of 2014 but only in limited quantities, which I hadn't heard. So, again, if you want one sooner rather than later, it's probably best to hurry.
The Surface docking station, which costs $200, allows users with the original Surface Pro or the Surface Pro 2 to dock their tablets (with keyboards attached). The docking station includes a display port, audio input and output jack, an Ethernet port, as well as a high-speed USB 3.0 and three USB 2.0 ports.
Here's one shot Craig sent me of one of his just-acquired docking stations:

(Credit: Aaron Craig/ ZDNet)

The Power Cover for the Surface 2, Surface Pro, and Surface Pro 2 is still not available for order yet and is still designated as "coming early 2014" on Microsoft's Surface.com site.

Microsoft officials said the company sold $400 million worth of its first-generation Surface tablets in the most recent fiscal quarter, which ended on September 30. They also said they sold double the number of Surfaces than they did in the previous calendar quarter, but we have no way of knowing how many that means, as Microsoft hasn't released Surface sales data (and it has sold quite a number of Surfaces at a discount).
Microsoft officials also said during the company's earnings call on October 24 that demand for Surface RT units was stronger than the company expected. They noted that a number of potential Surface Pro purchasers held off on buying devices in anticipation of the Intel Haswell-based Surface Pro 2's arrival.
Microsoft began making its second-generation Surfaces, the ARM-based Surface 2, and the Intel-based Surface Pro 2, commercially available as of October 22. Microsoft also cut $100 off the price of its first-generation Surface Pro devices this week.

Microsoft Surface 2 dinged for low repairability by iFixit

A look inside the Surface Pro 2.

(Credit: iFixit)

The Surface 2, Microsoft's latest entrant in the tablet market, isn't one that most people would want to take apart.
iFixit on Tuesday published photos and a guide on how to take apart Microsoft's new Surface Pro 2. It scored a 1 out of 10 for repairability, just like its predecessor, the Surface Pro.
"The delicate and arduous opening procedure leaves no room for mistakes: one slip-up, and you'll likely shear one of the four ribbon cables in the edge of the display," iFixit reported. "Tons of adhesive hold everything in place, including the display and battery."
The task of taking apart the Surface Pro 2 seems arduous, to say the least. According to iFixit, the device has more than 90 screws and dozens of mechanical fasteners. But after the company was able to break into the device, it found several components in addition to the Intel Core i5 processor. iFixit discovered that the device's 128GB SSD drive is an SK Hynix offering, along with its 4GB of RAM. Atmel made the touch-screen controller and AVR microcontroller.
The big story from the teardown, though, appears to be the exceedingly difficult task of breaking open the Surface Pro 2 and accessing its components. Even opening the tablet could put users in danger of damaging the slate.

Microsoft brings speech recognition to Bing developers

(Credit: Microsoft)

In July of this year, Microsoft made it official that Bing is more than just a search engine. It also is a developer platform, providing coders with controls, development kits, and the back-end services powering these elements.
On October 21, Microsoft added a long-awaited piece to the Bing developer toolbox: a speech recognition control. This new control allows developers to build Windows 8, Windows 8.1, and Windows RT Metro-Style/Windows Store apps that include speech-recognition as one of their inputs.
Microsoft execs also announced updates to the existing Bing Optical Character Recognition Control and Bing Translator Controls so that they support Windows 8.1.
"If you are a Windows Phone developer, you may already be familiar with the speech recognition inside Windows Phone: the user taps a microphone icon, speaks into the mic, and the text shows up on screen," wrote members of the Bing Dev Center team in a new blog post. "Now, that same functionality is available on Windows 8, Windows 8.1, and Windows RT through the free Bing Speech Recognition Control."
Microsoft has been encouraging developers to license its mapping, speech, translation, and various other search-related application programming interfaces (APIs) for years with mixed success. Going forward, Microsoft's pitch to developers is that they can embed not just a set of static APIs and controls, but the continuously updated logic and data powering them.
Some of Microsoft's own product teams are already using these Bing API-plus-service packages. The Bing search experience in Windows 8.1, for example, is making use of a number of the Bing APIs and controls, plus the services powering these elements. And some of the recently announced Microsoft AppEx applications -- like the Health & Fitness one that's been announced for Windows 8.1 -- do, as well. The Bing search engine itself is powered by these services, too, company officials said.
Don't forget, it's Bing that provides the responses when users search by voice via Kinect for movies, TV shows and music. It's Bing that's parsing the natural-language-query commands, such as "Xbox, Snap Internet Explorer." Specifically, it's the Tellme voice technology, combined with social-graph information, plus Bing's search functionality.
In other developer-focused news this week, Microsoft announced availablity of the Windows Azure software development kit (SDK) 2.2, which adds support of the final RTM release of Visual Studio 2013; integrated Azure sign-in support within Visual Studio; VS 2013 RTM VM images for MSDN subscribers; and a preview of Azure Management Libraries for .Net.

Microsoft reportedly testing its own version of Google Glass

Is Microsoft looking to challenge Google Glass?

(Credit: Google) 

 

Microsoft could have its eye on a rival to Google Glass.
The company is testing prototypes for Internet-connected glasses similar to Google's high-tech specs, The Wall Street Journal reported Tuesday. Citing the usual "people familiar with the matter," the journal revealed no details about the prototypes, but it did note that the project is part of Microsoft's strategy to compete with Google, Samsung, and Apple in the device market.
A spokesman for Microsoft told CNET that the company had no comment on the rumors.
Google launched Google Glass earlier this year with a $1,500 Explorer edition aimed at developers and early adopters. The company had hoped to release a less expensive consumer version later this year, but with only a few months left in 2013, that doesn't look likely.
Other companies are aiming to enter the high-tech eyewear market. Recon Instruments is prepping its Reconjet glasses for a March 2014 launch and will continue to invest in wearable computing, thanks to a "significant" investment from Intel. Samsung is rumored to be working on a product called Gear Glass.
High-tech eyewear is likely to be a niche market for the next few years, Canalys analyst Daniel Matte told the journal, but some products could fare well in the areas of health and security.

Microsoft repairs glitch in Windows RT 8.1 update

Today Microsoft returned a fixed version of Windows RT 8.1 to the Windows Store for download.
Microsoft removed the operating system update from the Store on October 19, two days after launching it on October 17. The Windows RT 8.1 update was causing installation problems for a number of users.
On October 21, Microsoft officials said the installation woes were limited to Surface RT customers. According to Microsoft, one out of every 1,000 Surface RT 8.1 installs were experiencing problems that left updates incomplete and devices "unbootable" or bricked.
Today Microsoft issued an updated statement about the Windows RT 8.1 situation. A spokesperson sent me the following:

"This was due to a rare situation where firmware updates had not completed at the time of the update to RT 8.1. In most cases, if a customer encountered this issue, the result was simply an extra reboot. However, for a very small percentage, the boot configuration data was affected, which prevented a successful boot. We worked to quickly resolve the issue and now encourage customers to update their Surface RT devices. Surface Pro and 8.1 customers were not impacted by this issue.
"As previously announced, there is a recovery solution available for download here for Surface RT customers who experienced the installation issue. We apologize for any inconvenience this may have caused. If an issue occurs with our software or devices, we take immediate steps to ensure a quality experience for every single customer -- that's been our driving priority in this case, despite the very limited number of customers impacted. We are grateful to the customers who shared their Surface RT devices, assisting our efforts to determine the root cause quickly."

Today Microsoft began selling commercially its new Surface devices -- the Surface 2 (running Windows RT 8.1) and Surface 2 Pro (running Windows 8.1).

Nokia's tablet turns Microsoft from BFF to archrival

The Lumia 2520 tablet.

(Credit: Nokia) 

 

Well, this is awkward.
Just hours after Microsoft's Surface 2 became available for sale, Nokia unveiled its own take on a Windows tablet, the Lumia 2520, putting some pressure on its soon-to-be parent company.
As Microsoft fans snapped up the Surface 2 in the US, Nokia introduced the Lumia 2520 alongside a number of jumbo smartphones and low-cost basic handsets halfway around the world in Abu Dhabi, United Arab Emirates.
Microsoft, of course, will eventually absorb Nokia's mobile devices business. But the introduction of the Lumia 2520, which runs the same Windows 8.1 RT operating system as the Surface 2, puts the once tight-knit partners in direct competition with each other.
Joe Belfiore, Microsoft's Windows Phone guru, previously told CNET that the acquisition of Nokia's handset business would mean fewer secrets. Once Nokia's phone business is a part of Microsoft, one can imagine there will be fewer redundancies of this sort.
Both run Windows 8.1 RT, which is the version of Windows that can't run legacy apps, an issue the original Surface RT faced when hitting the market. Why buy a Windows-based tablet when it can't run popular programs such as iTunes?
Both also offer sleek designs, USB ports, a 10.1-inch display, and that Windows-logo home button. Nokia even has its own $149 power keyboard cover accessory, although it's bulkier than Microsoft's Touch and Type covers.
Ifi Majid, who runs product marketing for Nokia's North American business, argued that Nokia took an approach that started with "mobile and worked its way down," while Microsoft is looking at the "business user and working its way up." The two companies come from different approaches, which result in different products.
"There's definitely room for both," Majid insisted.

Microsoft's Surface 2 midnight launch has everything but buyers

The Microsoft Store in the Westfield Centre mall in San Francisco, Calif. holds a Surface 2 launch event on Oct. 21.

(Credit: Nick Statt/CNET) 

 

SAN FRANCISCO -- Though Apple is sure to dominate the news cycle with the rollout of new iPads on Tuesday, Microsoft didn't want the coinciding launch of its Surface 2 tablet to go uncelebrated. So it went ahead and decided to throw a simultaneous nationwide in-store launch event -- as is now the fashion with high profile hardware launches these days.
Though unlike its Cupertino competitor, Microsoft's event didn't drive droves of people to pull out their wallets when the clock ticked twelve. In fact, nearly no one I talked with was interested in buying the Surface 2 tonight.
For the company on the verge of a CEO changeover and maneuvering the aftermath of its $7.2 billion Nokia acquisition, the launch of the Surface marks a time when Microsoft is looking to stand steady on its feet and tout its strengths. It's also an opportunity to play up the cool factor it hopes its tablet line can embody and exemplify.
But that enthusiasm, handed down from corporate and turned up to 11 by Microsoft employees, didn't translate to midnight sales. Here in the Microsoft Store's San Francisco location in the Westfield Center -- one of 10 locations holding Surface launch events tonight -- sounds of pulsing pop music and an exuberant staff were intent on creating a frenzied mood outside the neon-awash mall location. Fresh Surface 2's filled the tables and an entire wall of connected, colorful monitors played Microsoft ads on loop.
Roughly 50 people had assembled by the time the Microsoft Store's doors opened at 10 p.m. It was an admittedly small crowd -- when compared with the standard Apple devotion, albeit for the more-hyped iPhone launches -- though the line remained steady even as more and more attendees filed into the store. Surface 2 and Surface 2 Pro models are set to go on sale at midnight.

As for what types of Microsoft fans decided to come out for the event, it was a mixed bag, but one thing was for sure: not many were there to actually buy the Surface 2. Multiple groups of attendees said they simply received invites from a friend who worked in the store and had no intention of buying the tablet at all, let alone pick one up that night.
Ernie Pang, CEO of mobile games company Bake450, immediately answered "no" when asked if he was interested in buying a Surface 2. "Who is?" he added. "The hardware is great, but it doesn't complete the package." Pang said his company would love to develop for Surface and Windows Phone, but said "it's not just not there yet."
"I don't really subscribe to the whole tablet thing," said Tim Wingerter, one of those waiting in line prior to the 10 p.m. opening. "But I think their [Microsoft's] problem is awareness, and I'm a huge advocate," he added. So Wingerter came out, despite also having no intention to pick up a Surface. As an avid Windows 8 fan -- who also happens to be a Google employee, he admitted with some reticence -- he felt like showing up in person was the best way to show support.

Microsoft yanks Windows RT 8.1 update from Windows Store

(Credit: Microsoft)

Company temporarily pulls its recently released Windows RT 8.1 update for ARM-based devices owing to an unexplained issue.

 Microsoft has pulled temporarily its recently released Windows RT 8.1 update from the Windows Store because a vaguely explained "situation."

Microsoft pulled the RT 8.1 update some time in the morning on October 19 -- as reported by WinBeta.org -- two days after it first made it available for download by existing Windows RT users.
I asked Microsoft what led to the decision to pull the update and received the following statement from a spokesperson:

Microsoft is investigating a situation affecting a limited number of users updating their Windows RT devices to Windows RT 8.1. As a result, we have temporarily removed the Windows RT 8.1 update from the Windows Store. We are working to resolve the situation as quickly as possible and apologize for any inconvenience. We will provide updates as they become available.

I managed to update my Surface RT to Windows RT 8.1 on October 17 after several attempts to get the device to find the update. I have heard from a number of other Windows RT users who've had similar difficulties in locating and getting the update process to begin on their ARM-based Microsoft-made and OEM devices.
Microsoft made available for download the Windows 8.1 (for Intel) and Windows RT 8.1 (for ARM) updates earlier this week. Windows 8.1 adds a Start Button, boot-to-desktop option, and other updates designed to improve the usability and appeal of Windows 8.
Microsoft is going to make its next-generation Surface devices running Windows 8.1 -- the ARM-based Surface 2 and the Intel-based Surface 2 Pro -- available for purchase on October 22.

Surface Pro 2 in 256GB, 512GB models won't ship till Dec. 15

The higher-capacity and more expensive Surface Pro 2 tablets are in shorter supply than the 64GB and 128GB versions.

 

(Credit: Screenshot by Lance Whitney/CNET)

Surface Pro 2 buyers who preorder the 256GB or 512GB editions may not receive the tablet for another two months.
Set to launch on October 22, the new Surface 2 and Surface Pro 2 tablets have been up for preorders since September 24. The shipping times for certain models found at Microsoft's online store have fluctuated since then. The latest estimates indicate that the 64GB Surface Pro 2 will ship by October 21, while the 128GB version will ship by October 25.
But the 256GB and 512GB flavors both display a ship date of December 15, pointing to a shorter supply of those two models.
The Surface 2, meanwhile, is available in two capacities -- 32GB and 64GB, both of which are slated to ship by October 25.

Microsoft gives developers early access to Windows Phone builds

 

(Credit: Microsoft) 

The company looks to boost Windows Phone apps by giving developers access to operating system updates before they're released to the public.
Microsoft is making it easier for developers to get apps ready for future Windows Phone builds.
Microsoft on Monday launched Windows Phone Preview for Developers, a service that will allow developers to gain access to prerelease Windows Phone builds. The effort aims at providing developers the code they need to test their apps on the new software to get them ready for the update's final release.

The Windows Phone Preview for Developers mimics Apple's developer program. After announcing iOS updates each year, Apple allows its developer community to download the platform to their test devices and get apps ready for the final launch.
To gain access to Windows Phone previews, developers must log in to Microsoft's Developers page. In order to participate, developers need to meet one of three conditions: own a "developer-unlocked" device; be registered with the Windows Phone Store as a developer; or be registered as a Windows Phone App Studio developer.
Microsoft's developer preview program comes along with the software company's announcement Monday of Windows Phone 8, Update 3. The update, which is available now, adds support for screen sizes in the 5-inch-to-7-inch range and includes support for 1080p HD displays.

Windows Phone finally jumps into phablet era, but is it too late?

The latest update to Microsoft's mobile operating system isn't massive, but does include a critical change to allow for jumbo phones.

The third update to Windows Phone allows for more columns of tiles.

(Credit: Microsoft)

Windows Phone now comes in the supersize variety.
The third and latest update from Microsoft, released Monday, brings a number of incremental upgrades and changes to Windows Phone 8. The most crucial of them is support for a higher-resolution display and larger screen sizes, enabling its partners to finally get into the so-called phablet business.
Phablets, a mashup of a phone and tablet, have quietly become a vital part of any handset manufacturer's product lineup. While they remain a niche business in the US, the oversize phones are proving to be popular in regions such as Asia where, it just so happens, the fledgling operating system is doing pretty well.
"The update will fill the last piece in terms of screen size," said Greg Sullivan, part of Microsoft's Windows Phone team.
It won't be long before we see a Windows Phone phablet hit the scene -- Nokia is widely expected to unveil one at an event in Abu Dhabi, United Arab Emirates, next week.
Microsoft is a little late to the game, following behind a path blazed by Samsung Electronics, which is credited with creating the phablet market with its Galaxy Note franchise. Samsung is already on the third iteration of the Galaxy Note, which has won over critics that once mocked the large display.
That's been normal for Windows Phone, which often falls behind when it comes to specs and support for new technologies because Microsoft must approve their support. The latest update, for instance, finally allows manufacturing partners to incorporate faster quad-core processors into the phones. Bluetooth 4.0, also known as Low Energy, is a standard incorporated by iOS and Android, but isn't yet embraced by Windows Phone.
Sullivan said that Microsoft would prefer to keep a consistent experience on its phones rather than jump at every new feature or technology.
But now there are many options in the market beyond the Galaxy Note 3, including LG's Optimus G Pro or the even bigger Galaxy Mega. HTC is also expected to unveil its own phablet, the One Max, at an event tomorrow. The Galaxy Note phones, however, have really been the only legitimate hit out of the bunch.
So the question is: will anyone even care about a Windows Phone phablet?
But Sullivan argued the update does more than just allow for a larger screen. The changes include the ability to add another column of tiles, allowing users to fit more on their screen.
"It was important not to just make it bigger, but modify it to take advantage of the increased screen real estate," Sullivan said.
The current largest Windows Phone device features a 4.8-inch display. The update will allow for phones with displays that range between 5 inches and 7 inches, Sullivan said.
As the distant third operating system behind Google's Android and Apple's iOS, Microsoft needed to quickly fill all possible product gaps. Windows Phone is pegged to finish the year with 3.9 percent of the global smartphone market this year, with its share increasing to 10.2 percent by 2017, according to IDC.
In comparison, Android will end the year with more than three quarters of the market, with Apple controlling 17 percent.

Thanks to Nokia's deal-making in countries such as China and a wave of colorful and affordable devices, Windows Phones have steadily grown in many international markets, particularly emerging ones where the growth is faster.
Nokia's smartphone team will work to continue that trajectory when Microsoft takes control of that business.
While Microsoft is seeing growth overseas, the US market continues to struggle. Smartphones launched by Nokia and HTC after the launch of Windows Phone 8 last year were crushed by competition from the Galaxy S4 and iPhone 5. HTC in particular took it hard, and hasn't sought to make another Windows Phone after the failure of its Windows Phone 8X and 8S.
The US is proceeding in the right direction, Sullivan said, but noted the lack of progress relative to other markets.
Windows Phone, he said, was making more of an impression with first-time smartphone owners looking to upgrade from a basic phone. He touted the same, consistent experience on a low- and high-end Windows Phone as an advantage over the other platforms.
At least one hurdle is out the way. With BlackBerry throwing in the towel and giving up on the smartphone market, Windows Phone is the No. 3 platform by default. Sullivan said the platform was benefiting from the clarity that comes from two competing upstarts.

Sullivan on BlackBerry: "We're clearly trending in different directions."
Still, Windows Phone has a long way to go before catching up with the likes of iOS and Android. Despite its progress coaxing developer support, Windows Phone remains a low priority relative to the larger platforms, and Microsoft still has to be proactive in getting developers on board.
Sullivan said the platform would have to get past the 10 percent market share mark before app developers come knocking on its door instead.
Microsoft still has a goal to be the No. 1 mobile platform on the market, Sullivan said. As ludicrous as that sounds, he knows shakeups can happen at any time.
"This market can change pretty dramatically," Sullivan said.
Microsoft is desperately hoping things swing in its favor.

Microsoft spruces up Outlook.com Android app

 

(Credit: Screenshot by Lance Whitney/CNET)

Microsoft has enhanced its Outlook.com app for Android users.
Rolled out Thursday, the new version lets you search for all e-mail, including items still in the cloud and not yet synced to your device. You can also sync all of your e-mails to access them offline.
You can now send e-mails from the app using any of your Outlook.com aliases and set an automated vacation reply for when you're away.
Microsoft has added 8 new color themes, so you now have 11 colors in total should you wish to give the interface a fresh paint job. Finally, the app now supports traditional Chinese language characters.
The app seemed due for improvements. Users rating it on Google Play have given it a score of just 2.7 out of 5, with more than 48,000 one-star reviews compared with 29,500 five-star reviews. Those who've chimed in to complain about the app cite a variety of problems from log-in issues to slow performance. So far, the latest update has garnered positive comments from several users, though some feel it still needs work.

Microsoft gives Windows 8.1 some Fresh Paint

The Fresh Paint app for Windows 8.1 and Windows Phone 8 provides people with a realistic painting program for free.

(Credit: Microsoft)

Microsoft Paint lovers who scratched their heads at the lack of a native Windows 8 drawing app can rejoice: the new Fresh Paint will ship on Windows 8.1 and Windows Phone 8.
Fresh Paint is a free painting app for the "Metro" mode of Windows 8 (download) and Windows Phone 8 (download). When it announced the beta preview of the app, Microsoft said that it started out as a "research project" to make a realistic digital-painting app.

Fresh Paint, which had been downloaded more than 1 million times as of February, will be available October 18 on Windows 8.1, and October 14 on Windows Phone 8.
"[W]e do a lot of real-world painting to make sure we get our algorithms right," Microsoft's general manager for its startup business group Ira Snyder wrote in the blog post.
The app lets you paint with a variety of tools, including watercolor, graphite pencil, and oil. It lets you mix colors, change canvases and brushes, and erase unwanted marks. Despite the similar name to Microsoft Paint, the long-standing Windows drawing app, it's not a direct replacement for MS Paint. Fresh Paint is only available in Metro mode, while MS Paint, with a new Ribbon toolbar, is still available in Windows 8's Desktop mode.
The updated version of Fresh Paint that will ship next week offers improved reactions to stylus pressure; new ways to incorporate photos into your painting; in-app artistic "inspirational" tools thanks to an Inspire Me feature; and the ability to make high-quality prints of your painting thanks to a partnership with CanvasPop.
The CanvasPop deal is interesting because Microsoft has figured out how to scale digital paintings to large-format canvas prints by analyzing your painting at the pixel level, using bilinear filtering, and then smoothing out the pixels. The technique, Microsoft says, will let people who use small devices such as Windows Phones make big prints of their paintings with no resolution loss.

Thanks to a deal with CanvasPop, you can print your paintings on large- or small-format canvases.

(Credit: Microsoft) 

 

Fresh Paint connects to CanvasPop thanks to a CanvasPop API, the first imaging program to do so. Printing with CanvasPop is not free, although Microsoft will be offering sign-up deals when Windows 8.1 launches.
The app also hooks into Microsoft SkyDrive, so you can sync your paintings across devices. However, a Microsoft representative wasn't sure if app settings will sync across devices.
Microsoft has been marketing the app as a way for artists and children to get comfortable with Windows 8 touch screens, and has made the app available for use in New York City's Museum of Modern Art.

HP no longer playing by Microsoft, Intel rules, exec says

The laptop sans Wintel: The $279 HP Chromebook 11 runs Google's Chrome OS on top of a Samsung Exynos processor.

(Credit: Sarah Tew/CNET)

With Microsoft and Intel becoming "outright competitors," Hewlett-Packard sees most of the PC growth happening outside the Windows market. That means Android, Chrome, and Ubuntu.


A Hewlett-Packard vice president had a lot to say about alternatives to Microsoft and Intel during a meeting of financial analysts Wednesday. And HP CEO Meg Whitman had some pretty provocative comments of her own.
The shift to non-Windows products at the world's largest PC maker is happening against a backdrop of a shrinking "Wintel" (Microsoft-Intel) PC market.
IDC reported this week that worldwide PC shipments in the third quarter of 2013 contracted 7.6 percent year-to-year.
"The market is changing more today than it has in the past 30 odd years I've been in the industry," Dion Weisler, executive vice president of printing and personal systems at HP, said at the company's Securities Analyst meeting in San Jose, Calif., on Wednesday. He continued:

In the past, if you had the Wintel playback and played by the Wintel playbook you could pretty much predict your results. You just needed to run a little faster than the other guy. Everything was pretty predictable...[But] we're in a new world now with multiple operating systems, new architectures, new silicon, new graphics, new subsystems.

Whitman had some tough words of her own for Microsoft and Intel.

HP's traditional highly-profitable markets face significant disruption. In personal systems...Wintel-based devices are being aggressively displaced by ARM-based PCs and mobile devices running competing operating systems...current, long-term HP partners, like Intel and Microsoft, are increasingly becoming outright competitors.

The push into non-Windows markets is being driven by places like China. "In China there are more tablets sold than [in] the United States. Guess what? Most of those are not on the Windows operating system," Weisler said.
HP is focused on four OSes now: Microsoft, Android, Chrome, and Ubuntu, he added.
"Chrome and Android represent $46 billion of opportunity and is growing at 12 percent," Weisler said.
As an example, Weisler brandished the new Chromebook 11 jointly developed with Google.
And it's not just Chrome and Android. He talked about a major a new contract in India for systems running on Ubuntu.
HP is not giving up on the PC market, of course. The market is still a $170 billion global market, he said. But it's declining.
"The traditional PC market declined faster than we thought it would," Weisler said.
He did cite opportunities, even in the shrinking Windows-Intel market. They include all-in-ones, workstations, and thin clients.

HP Executive VP Dion Weisler shows off the Chromebook 11 on Wednesday at the HP Securities Analyst meeting.

(Credit: Hewlett-Packard)

Microsoft's new Surface tablets close to selling out

The company's developers group says in a tweet that both the Windows RT and Windows 8.1 versions of the device are in short supply. But how short is "short," exactly?

Microsoft's Surface Pro

(Credit: Sarah Tew/CNET)

It soon may be tough to find one of Microsoft's Surface tablets, the company said. The Surface 2 and Surface Pro 2 "are close to selling out," Microsoft's developers account tweeted earlier Friday.
At this time, it's unclear how many tablets Microsoft made and what "close to selling out" actually means. 

Tweet :
Microsoft Developer        ✔ @msdev

Surface 2 and Surface Pro 2 are close to selling out. All those buyers are gonna need apps. Your move: http://developer.microsoft.com/ 

3:00 AM - 4 Oct 2013

We've contacted the company and will update the report when we have more information.
In the case of its first generation Surface RT device, Microsoft ended up building many more tablets than it could sell. In July, the company booked a $900 million write-down for excess Surface inventory, and it also revealed that it had generated only $853 million in revenue from Surface RT and Surface Pro since their debut in the fall. Rather than dump the remaining Surface RT tablets, Microsoft continues to offer the product at a discounted rate alongside its updated devices. Surface tablets are Microsoft's own take on the burgeoning niche -- one that is largely dominated by Apple's iPad, but with a healthy dose of competition from devices using Google's Android OS. Microsoft, not wanting to miss out on the tablet gravy train, opted to push Windows 8 and Windows RT through its own products. While Microsoft's first attempt last year led to disappointing results, the company is trying again with improved internal specs. The Surface Pro 2 is what Microsoft calls a full laptop in a tablet design, while the Surface 2 runs a stripped-down version of Windows 8. Microsoft opened preorders for the devices on Sept. 24, and they'll hit stores Oct. 22.
Despite the apparent strong preorders, Microsoft has faced some recent hurdles ahead of an update to its Windows operating system. Dell earlier this week became the latest company to dump plans to develop products running Windows RT, the version of Microsoft's software that runs on chips typically used in cell phones, those based on technology from ARM Holdings. The operating system has failed to gain traction with users, in part because traditional Windows programs won't run on Windows RT.
Microsoft earlier this week told CNET in a statement that Windows RT "continues to be an important element of the Windows strategy."

Microsoft trying to win HTC back to Windows Phone: report

HTC plans no new Windows Phone models, but Microsoft proposes to cut or eliminate its license fees for dual-OS Android-Windows phones to try to persuade the company to change its mind, Bloomberg reports.

Imagine the HTC One with Windows, not Android.

(Credit: CNET)

Microsoft is offering inexpensive or even free Windows Phone licenses to try to persuade HTC to once again sell phones using the operating system, Bloomberg reported Friday. And it looks like the proposal on the table is for shipping Windows Phone and Android on the same HTC phones.
HTC, the company that built the first Android phone and that now is touting its HTC One, sold Windows Phone models in the past. But it has no current plans to sell any more, the Bloomberg report said.
Terry Myerson, head of Microsoft's operating systems division, presented a proposal to HTC in September that offered to cut or even eliminate Windows Phone license fees, Bloomberg reported, citing unnamed sources. Myerson is scheduled to discuss it further this month on a trip to Asia, the news service said.
It's not clear how the dual-OS approach would work. Technical details are being worked out, Bloomberg reported.
HTC declined to comment on the report. CNET contacted Microsoft and will update this story with its response.
One big sticking point in winning HTC over, no doubt, will be that Microsoft, by acquiring Nokia's mobile-phone business, aspires to become a direct competitor to HTC. However, Android maker Google already is one with its Motorola division.
Microsoft has struggled to overhaul its business for a more mobile industry that's much broader than just PCs. Windows Phone hasn't caught on in the smartphone market compared with top dogs iOS and Android. And Windows 8, although optimized for tablets, alienated many by introducing a very different interface.
Microsoft is changing dramatically, however, by becoming a hardware company. Its first major effort was the Surface tablets, due to be replaced by second-generation Surface and Surface Pro models on October 22.
HTC is also having difficulties, though. With troubles delivering the HTC One and HTC One Mini, HTC reported a quarterly loss on Thursday, its first since it went public in 2002.

Microsoft docks Steve Ballmer's pay over Windows 8, Surface RT

CEO received nearly 80 percent of the total incentive award for which he was eligible in fiscal 2013. Issues plaguing the Windows division were to blame.

 

CEO Steve Ballmer at Microsoft Build 2013 in June.

(Credit: James Martin/CNET) 

 

Microsoft's annual proxy statement indicated that Microsoft CEO Steve Ballmer had his pay docked because of Windows division's lackluster performance in the past year.
Ballmer received $1.26 million in fiscal 2013 -- a base salary of $697,500 and a bonus of $550,000. Ballmer's "incentive plan award," calculated by the Microsoft board, was only 79 percent of the total for which he was eligible. Comparatively, for fiscal 2012, Ballmer received 91 percent of his eligible incentive award.
The fiscal 2013 proxy statement spelled out the reasons why Ballmer was docked:

"The company faced challenges due to weakness in the consumer PC market. While the launch of Windows 8 in October 2012 resulted in over 100 million licenses sold, the challenging PC market coupled with the significant product launch costs for Windows 8 and Surface resulted in an 18% decline in Windows Division operating income. Slower than anticipated sales of Surface RT devices and the decision to reduce prices to accelerate sales resulted in a $900 million inventory charge."

The latest proxy indicated that a number of other Microsoft managers received 100 percent of their incentive payments, including Chief Operating Officer Kevin Turner; Chief Financial Officer Amy Hood; Office President Kurt Delbene. Server and Tools chief Satya Nadella actually received 105 percent of his eligible award. Server & Tools was a consistently high-performing division for Microsoft during the past fiscal year, with the unit housing seven  $1 billion-plus businesses.
In fiscal 2012, the 3 percent decline in revenue for Windows and Windows Live; slower than planned progress in Online services; and the Windows division's failure to provide a browser choice screen on certain Windows PCs in Europe led to Ballmer failing to receive his full 100 percent last year. Former Windows President Steven Sinofsky also didn't get his full incentive award payment last year as a result of the European browser-ballot issue

 

Gates said to be under investor pressure to resign as chairman

Top investors worry that Gates' presence on the board prevents adoption of new corporate strategies, sources tell Reuters.

Microsoft Chairman Bill Gates.

(Credit: CBS)

The impending departure of Steve Ballmer as Microsoft's chief is not enough to satisfy some top investors who are reportedly calling for Bill Gates to resign as chairman.

Sources tell Reuters that three of the company's top 20 investors are pressing the board to force Gates out of the company he founded 38 years ago. The investors reportedly worry that Gates' presence on the board prevents adoption of new strategies and will limit the power of whoever is chosen to replace Ballmer.

However, the board is unlikely entertain the suggestion, Reuters notes, saying the pressure is coming from investors who hold more than 5 percent of the company's stock. The investors' identities were not revealed.

They are also reportedly concerned that Gates maintains influence within the company that is out of proportion with his declining ownership stake. While still Microsoft's largest shareholder with nearly 389 million shares, or 4.5 percent, Gates has been selling about 80 million shares a year as he focuses on philanthropy.

Gates, who stepped away from his day-to-day role at the company five years ago, was suggested by some as an early candidate to replace Ballmer. However, recent speculation has settled on Stephen Elop, a former Microsoft executive who is rejoining the company with Redmond's $7.2 billion acquisition of Nokia's handset division, and Ford CEO Alan Mulally, who has said he happy to stay at the automaker.The pressure comes just months after Ballmer's announcement in August that he would be stepping down as CEO within the next 12 months -- once a replacement is found who will carry out Microsoft's new vision of offering devices and services, not just software. The company's board has formed a special committee to seek out potential candidates and has been narrowing down its list of possible successors.

CNET has contacted Microsoft for comment and will update this report when we learn more.