CES: What Microsoft's Ballmer didn't say

By | January 5, 2011, 8:16pm PST

Summary: This isn’t a typical keynote write-up. At the kick-off Consumer Electronics Show (CES) 2011 keynote by Microsoft CEO Steve Ballmer on January 5, the more interesting bits were what Ballmer didn’t say.

CES 2011

This isn’t a typical keynote write-up. Usually, covering a keynote, I write about what executives say or announce. At the kick-off Consumer Electronics Show (CES) 2011 keynote by Microsoft CEO Steve Ballmer on January 5, the more interesting bits were what Ballmer didn’t say.

He didn’t offer Windows Phone 7 sales numbers. (Microsoft said recently it had sold 1.5 million WP7 devices, but later admitted it had sold these to carriers, not consumers.)

He didn’t offer any new Windows 7 sales figures.

He didn’t talk about Microsoft’s plans to compete with Apple TV and Google TV (or why it isn’t planning to do so).

Most alarmingly, he didn’t have anything to say about how Microsoft plans to address the slate market beyond what company officials have said already — namely, that Windows 7 makes a darn good slate/tablet operating system and will be the operating system that Microsoft makes available to its partners for the next two-plus years. I strongly disagree, as even the nicest looking Windows slates hitting the market are either 1. super pricey; 2. horrible re: battery life; 3. heavy/bulky; and/or 4. not touch-centric.

Remember Ballmer said that Microsoft’s and its partners’ answers to the iPad would be coming in 2011, and would be Intel Oak Trail dependent? Other than showing off the new Samsung Sliding PC, which is running Oak Trail, Microsoft execs didn’t have more to say on that front.

Ballmer did reiterate that the next version of Windows (which he didn’t call Windows 8) will run on ARM processors. He noted that Microsoft sold 8 million Kinect sensors in 60 days. (What he didn’t say is that the 8 million was sales to the channel and not consumers. So we don’t really know how many consumers bought.) He noted that Netflix and Hulu soon will be Kinect-enabled on Xbox Live. And he noted that Microsoft will deliver a thinner (and hopefully cheaper) Surface 2.0 platform later this year.

The most intriguing thing about Ballmer’s keynote address, to me, was his closing: “Whatever device you use, now or in the future, Windows will be there.”

I am taking the man at his word, and assuming that he is talking about Microsoft’s long-term goal: To make Windows (and not some Windows variant, like Windows Compact Embedded or Windows Phone OS) the ubiqitious operating system to which developers will write and consumers will run. That, however is not a 2011 deliverable. It’s further away. Much.

Kick off your day with ZDNet's daily e-mail newsletter. It's the freshest tech news and opinion, served hot. Get it.

Topics

Mary Jo has covered the tech industry for more than 25 years for a variety of publications and Web sites, and is a frequent guest on radio, TV and podcasts, speaking about all things Microsoft-related. She is the author of Microsoft 2.0: How Microsoft plans to stay relevant in the post-Gates era (John Wiley & Sons, 2008).

Disclosure

Mary-Jo Foley

Freelance journalist/blogger Mary Jo Foley has nothing to disclose. WYSIWYG (what you see is what you get). I do not own Microsoft stock or stock in any of its partners or competitors. I have no business ventures that are sponsored by/funded by Microsoft or any of its partners or competitors.

Biography

Mary-Jo Foley

Mary Jo Foley has covered the tech industry for 25 years for a variety of publications, including ZDNet, eWeek and Baseline. She has kept close tabs on Microsoft strategy, products and technologies for the past 10 years. In the late 1990s, she penned the award-winning "At The Evil Empire" column for ZDNet, and more recently the Microsoft Watch blog for Ziff Davis.

Got a tip? Send her an email with your rants, rumors, tips and tattles. Confidentiality guaranteed.

199
Comments

Join the conversation!

Just In

RE: CES: What Microsoft's Ballmer didn't say
dfwekrdfe49-24353615267611728846555800668083 10th Nov
rspejb,good post!
0 Votes
+ -
Don't laugh, but I love the Zune HD. With the integration of Zune on the WP7 and Xbox, any mention of the future of Zune was alarmingly absent.
0 Votes
+ -
Contributr
Zune HD
Mary Jo Foley 5th Jan 2011
For now, MS is all about Zune as a marketplace for video/audio. Rumor has it we might hear about a Zune HD 2 some time later this year... an iPod Touch like device. We'll see, I guess. MJ
0 Votes
+ -
@Mary Jo Foley

I think a smart idea would be to take the WP7 interface - and put that onto a Zune - that way they only have the one "handheld" OS - and they can go head to head with the iPod Touch.
0 Votes
+ -
alarming
banned from zdnet 6th Jan 2011
@Mary Jo Foley
i love it, that you are "alarmed". it is time to jump ship, i guess. or you spend the rest of your "carrier" watching your beloved "softies" die a long and painful death. but you can still become a google watcher, i guess.
  • Flagged
0 Votes
+ -
I would love to have MS design the speaker function and phone feature into the ZUNE HD. It would then be an awesome device: smaller, thinner, and very practical.
0 Votes
+ -
Zune vs Phillips, Casio, Panasonic...
Rex1Ballard 6th Jan 2011
@Mary Jo Foley likes the Zune.
The problem with the Zune is that you have a device selling for almost $200 that has roughly the same capabilities as consumer electronics devices selling for $20 to $50 by Sansa, Phillips, Casio, and many other consumer electronics device makers - and their products work fine for the primary purpose of playing good music obtained at reasonable prices from a number of different media vendors.

Why be tied into the iTunes store? With Napster, Rhapsody, and 20 other vendors, I get better selection at a better price.
0 Votes
+ -
@Rex1Ballard
I'm a guy and I by nature HATE shopping going for store, to store, to store. Browsing the whole ball of wax is offensive to me and a huge waist of my time. Apple gives me a good one stop shopping option and I LOVE it!

Pagan jim
0 Votes
+ -
RE: CES: What Microsoft's Ballmer didn't say
xnederlandx Updated - 5th Jan 2011
@Camden boy
Agreed. I was hoping on some news about the (speculated) "Zune HD2"...
0 Votes
+ -
Plenty of stats available, but it's beyond the scope of CES, and certainly beyond the scope of the keynote!

What people didn't say is literally a non-story. I yawn when people make a fuss about what Microsoft did NOT say. This article is sensationalist hype.

More than 7 copies of Windows 7 sold every second.

A new member joins Xbox Live every two seconds.

Etc.
0 Votes
+ -
@Camden boy Go online and try and find ANY sales figures for Zune HD.

You can't.
0 Votes
+ -
And focus on providing Android with development software and Office suite.

Whom ever does this first, with the advent of Atrix, will make tons of money this next decade! Add to that Intel's Micro SSD drives and you have one awesome package on any Android device!
0 Votes
+ -
@Uralbas I thought Eclipse was supposed to be BETTER than Visual Studio, at least according to the Droid crowd. The truth finally comes out, eh? Everyone knew that wasn't true anyway. happy
0 Votes
+ -
@Uralbas You may wish to check your facts. Windows 7 is the fastest selling OS of all time. More than seven copies of Win7 are sold every 7 seconds.
0 Votes
+ -
RE: CES: What Microsoft's Ballmer didn't say
ItsTheBottomLine 6th Jan 2011
@Uralbas "...they lost the OS fight" Huh?
0 Votes
+ -
@therestofyou, not Uralbas
Clearly, he's talking about the mobile OS fight. Your desktop OS figures are meaningless in this context and you just appear shill-y or possessing low reading comprehension when you bring it up.
0 Votes
+ -
RE: CES: What Microsoft's Ballmer didn't say
DeusXMachina Updated - 6th Jan 2011
@Uralbas
The word is "whoever".
0 Votes
+ -
@Camden boy: maybe when Samsumg, LG, Dell, HTC bring on models of the WP7 phones without the phone functionality we will get the "Zune 2", only it will be OEMs again, and not a Microsoft device... (I don't see why this would be difficult to do)
0 Votes
+ -
@Roque Mocan
Not sure who will make the device but Metro will be the UI for the next Zune.
@Camden boy Zune is amazing, makes iTunes looks like trash. But nobody will agree with you, that is until they use it and see for themselves.
0 Votes
+ -
@Narg
If it is so amazing, then why won?t Microsoft release sales numbers? They can always resort to ?Channel stuffing? (think windows 7 phone Series, and Kinect). That way the can say we sold it, without admitting the sales are not as well as they wool like,
0 Votes
+ -
@Narg I would try the Zune out and see for myself, except that Microsoft FORGOT about Canada again when it came time to distributing the Zune. I would have to go down to the States and smuggle one across the border.
0 Votes
+ -
@Narg
We're already integrated in to itunes! since 2003!! it works... that's why people won't try ZUNE
0 Votes
+ -
RE: CES: What Microsoft's Ballmer didn't say
Traxxion Updated - 6th Jan 2011
@Narg
Don't be so polite - iTunes IS trash.....
  • Flagged
0 Votes
+ -
RE: CES: What Microsoft's Ballmer didn't say
ItsTheBottomLine 6th Jan 2011
@Narg My Daughter has a Zune and my son has an iTouch. The Zune software is awesome easy to use and fast. iTunes for my son stinks,, it is horrible, slow can't handle my mp3 catalogue it's a piece of garbage. She has a GenII 80Gig Zune sitll going an working strong with great battery.
  • Flagged
0 Votes
+ -
@Narg "boy Zune is amazing, makes iTunes looks like trash."

Which explains why Zune sales are rocketing off the charts.

Oh, wait...
0 Votes
+ -
@Narg
Dear Nard
iTunes is part of a highly integrated Apple echo system that links the Mac computer, iPhone, Apple TV, iPhoto in a very well thought out way.
As a Windows user you couldn't possibly get all the benefits of iTunes.
To call it trash is hyperbole.
You should say something like Zune works better on the PC platform.
0 Votes
+ -
@Narg
I'm not going to feel bad wrt MS vs Apple on the Zune. iTunes has the network effect and a kind of lock-in, much like MS has enjoyed in the OS market for decades. I wish neither NE or lock-in like this existed, but MS has been on the receiving end for long enough that they can stand losing once in a while.

Win on ARM will also eliminate any legacy apps and put Win on a much more equal footing with competitors. We'll see.
0 Votes
+ -
@Rick_K do you associate sales figures with value or quality? Do you think something can't be good unless it is a top seller? If so, that is sad.
0 Votes
+ -
I see alanzo is another genius that thinks that only best selling items can be good. I bet he thinks Amerian Idol is the best thing on TV, too, since it gets such high ratings!
0 Votes
+ -
@Camden boy

What's a Zune? Did they introduce a new product I missed?
0 Votes
+ -
@Camden boy
Seriously, do people really use ZUNE??? wow
0 Votes
+ -
RE: CES: What Microsoft's Ballmer didn't say
Traxxion Updated - 6th Jan 2011
@Hasam1991
Seriously, do people really use iTunes!?! wow.....
  • Flagged
0 Votes
+ -
@Hasam1991

"Seriously, do people really use iTunes!?! wow..... "

Actually yes people do use iTunes. And unlike the Microsoft's Zune, there's hard numbers to back it up. If we are to count iTunes users credit card accounts alone, that's 150 million users at last count. wink
0 Votes
+ -
@Camden boy I love my Zune HD too. I hope they update them so they can easily:

Stream radio stations

Stream video

Run flash

Load recorded TV from Windows Media Center

ect.

If they really want an app store then the more the merrier, and they should include our current Zune HDs by upgrading the OS. Then we will be buying the apps too!
This often happens towards the end of a product's life-cycle. New gimmicky things are bolted-on to try to re-boost people's waning enthusiasm for the product. Actual sales figures and market-share suddenly start being ignored. The next step would typically be to find Windows being offered in different colours other than blue.
Regards from
Tom happy
0 Votes
+ -
@Tom6 Finally a reasonable comment that I can reply too happy

Tom, that's exactly the feeling I get (end of life cycle) from the lack of mention. I was hoping to hear some indication that maybe Microsoft would update the Zune device software so that it had binary compatibility with Windows Phone 7. One app store, no matter what device... kinda nice.
0 Votes
+ -
Needs Touch UI
cvocvo 5th Jan 2011
Exactly. Microsoft can put Windows 7 on any form factor they want but the bottom line is they still need a touch friendly user interface. They should try on http://thinix.com/mymashup or http://thinix.com/touch for size.
0 Votes
+ -
RE: CES: What Microsoft's Ballmer didn't say
PolymorphicNinja Updated - 5th Jan 2011
I suspect Microsoft's answer to AppleTV and GoogleTV is the XBox 360. There is plenty of video content on it already, and there are rumors of it expanding beyond the standard ESPN, and Netflix offerings.
shows music videos and other stuff.
0 Votes
+ -
RE: CES: What Microsoft's Ballmer didn't say
jeremychappell 6th Jan 2011
@PolymorphicNinja I think this is exactly right. It's also the wrong strategy - for as many people as it attracts there will be an equal number repelled by a "games console". I'm in the former camp - but I know the latter exists, and it's pretty large.
0 Votes
+ -
@jeremychappell Right now you can break the connected TV peripheral into 3 segments: (1) games, (2) casual games, and (3) enhanced tv. The first two segments are huge. Just look at the combined sales of the PS3, 360, and Wii. The third segment is pretty small. Look at the sales for the Apple TV and Google TV. The 360 is in really good position now to compete strongly in the first two segments. And, with their CES announcements, they are giving customers a reason to not look elsewhere for #3.
0 Votes
+ -
@jeremychappell
Also, the Xbox360 or a platform based on it could become cheaper over the next couple of years, which will open the platform to those who do not want a games console per se, but do want a service for TV content delivery. This sort of happened with the Xbox1 toward the end of its life. I still use 2 of them as media centers. Admittedly, this eventuality was all thanks to homebrew developers and hackers. LEARN MICROSOFT - stop trying to constantly bulldoze people with constant upgrades and allow your company and your customers to use what you already have in place for a little while longer. It is win win.

To be honest though, I think the number of people who do not want a games console is pretty miniscule.
0 Votes
+ -
@madoublet & @Traxxion

While I have not used a 360 for this type of content and didn't follow their CES announcements regarding it I can see how it could be MS's strategy to compete with Apple and Google TV. You are correct that the enhanced TV market is pretty small right now but it's really in it's infancy at the moment and will only grow. The game console market on the other had is very mature. Not that there isn't any room for growth or new features to compete with enhanced TV but they are hard to compare right now. As far as the number of people that don't want a game console being minuscule, I think you are way off here. It would be hard to get true statistics because you can't just go on sales figures and compare that with the number of household because how many might have multiple units from the same company or various companies. If you could figure out a way to determine the number of households that do have one or more consoles then you could compare that to households overall to get a better picture. You could also use that figure to get an idea of how many would want enhanced TV but not a game console. Obviously not all of them but a percentage, whatever that percentage might be.
0 Votes
+ -
I think with all the negatives about Win7 being on a tablet, MS did a great job convincing their OEM partners to still making tablets running the OS. What I think MS should do is to produce a suite of core apps that is touch friendly such as a Live suite for Windows 7 Tablets, and start pushing for developers to write Silverlight apps that will run on Win7. We all know how easy it is to port a Windows Silverlight app to a WP7 Silverlight app. And if and when MS makes an OS specifically for the tablet, the apps only require minor changes if any to port to the new OS. I don't see MS abandoning the Silverlight language any time soon.
That's just my thoughts, MS just needs a better marketing campaign to promote the tablet form factor.
0 Votes
+ -
When you deliver a pricey OS...
HollywoodDog 6th Jan 2011
@wp7ap ... which powers almost every box shipped by a computer maker, you probably have a lot of leverage to induce them to ship products you want shipped. There's probably a million levers they can pull to make whatever desired course of action reality.
0 Votes
+ -
Microsoft's marketing...
HollywoodDog 6th Jan 2011
@wp7ap ... ranges from incredibly horrible to passable. I can't recall ever seeing marketing from them which really connected. It's gotten better at communicating what their products strategy is, but none of them are just enjoyable to watch, in the way the "I'm a Mac/I'm a PC" were.

Perhaps they should bring back the actress who played Lauren to tell us how cheap Windows slates and phones are...(?) Kidding.
0 Votes
+ -
Catastrophic Fail
Doobi 5th Jan 2011
I'm sorry but if that's what Steve thinks should be in a CES keynote, and more worryingly the direction the company should be taking he should be fired before he gets back to Redmond.

Besides the being dull, patronizing and completely uniteresting, he has no vision (sell more Windows doesn't cut it), and worse not even a glimmer of hope for innovation and absolutely nothing that will stem the tide of Android and Apple stealing their lunch.

Steve Jobs is probably in hysterics about now. The "next big thing" won't be Windows on ARM. It'll be iOS on PC.

And this btw, is from a bonafide WP7 carrying Microsoft fanboy.
0 Votes
+ -
RE: CES: What Microsoft's Ballmer didn't say
Cylon Centurion 5th Jan 2011
@Doobi

Same here. I don't care for Ballmer at all.
I agree. Ballmer looked old, out of touch, desperate, frumpy, very last-decade, the Anti-Hip. And the woman who gave the WP7 demos was also the epitome of a fake plastic corporate mask (soul-less). I loved the Kinect and Surface demos, and Win-ARM is interesting, but, I have to join the chorus, it is definitely time for Ballmer to go...
0 Votes
+ -
I'll admit
Cylon Centurion 6th Jan 2011
@JFDude

She was working on my nerves...
0 Votes
+ -
RE: CES: What Microsoft's Ballmer didn't say
dfwekrdfe49-24353615267611728846555800668083 10th Nov
rspejb,good post!

Join the conversation!

Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]
ie8 fix
Click Here

The best of ZDNet, delivered

ZDNet Newsletters

Get the best of ZDNet delivered straight to your inbox

Facebook Activity

White Papers, Webcasts, & Resources
ie8 fix