Microsoft shows off plans for touch-screen Windows

Microsoft Corp. said its next operating system will be made for touch-screen applications, an alternative to the computer mouse, and its top executives reaffirmed interest in joining forces with Yahoo Inc.

Microsoft chief executive officer Steve Ballmer on Tuesday unveiled the iPhone-like touch-screen feature at The Wall Street Journal's "D: All Things Digital" conference, calling it "just the smallest snippet" of the Windows 7 operating system slated for release in late 2009.

A Microsoft employee showed possible applications like enlarging and shrinking photos and navigating a map of San Diego by stroking the screen.

Microsoft chairman Bill Gates framed the new feature as an evolution away from the mouse.

"Today almost all the interaction is keyboard-mouse," Gates said at the conferencein Carlsbad, Calif. "Over years to come, the role of speech, vision, ink all of those will be huge."

The software company's top two executives defended its last operating system, Vista, while acknowledging missteps. Gates said he has never been 100 per cent satisfied with any Microsoft product, and that the company prides itself on fixing shortcomings in later versions.

"Vista has given more opportunity to exercise our culture than some products," he deadpanned.

The former Harvard University classmates fielded a range of questions for more than an hour, sharing the stage as Gates prepares to relinquish daily responsibilities at the company in July to focus more on philanthropic work.

Ballmer said Microsoft remained in discussions to team up with Yahoo Inc. after Microsoft's $47.5-billion US bid for the company was spurned earlier this month. He said Microsoft wasn't planning to buy Yahoo but offered only the barest details of what he has in mind.

"We are not rebidding for the company. We reserve the right to do so. That's not on the docket," he said.

Microsoft said May 18 that it revived talks with Yahoo, without providing specifics. Ballmer declined to say much more, even when pressed.

"All I'll say is we're in ongoing discussions with them around a partnership," he said.

Microsoft has divulged little about its Windows 7 operating system even after introducing the touch-screen feature Tuesday a contrast to the much-hyped release of Vista.

Chris Flores, a director on Microsoft's Windows client communications team, said in a posting on a company blog Tuesday that the more circumspect tack was deliberate and intended to avoid announcing plans that may change.

"With Windows 7, we're trying to more carefully plan how we share information with our customers and partners," he wrote.