Product share varies from country to country. In the US and the UK, the share [of Xbox 360] is high, but besides Japan, there are other areas we haven't penetrated. From now on, I think the breakthrough's going to be the online service, and you'll be surprised if you look at that.

It was a little stunning to learn last week that at least one disgruntled Xbox 360 owner had decided to skip the regular channels when dealing with a burnt out 360 and instead went straight to Bill Gates. Even more stunning, Gates apparently knocked some heads and got the guy sorted out in record time (24 hours).

While Consumerist reader, and Xbox 360 owner, Jon was delighted with the outcome, it seems Microsoft was not so much. Today they've dropped us a friendly note to remind everyone that Bill really isn't your go-to guy for Red Rings of Death:

Bill Gates or Microsoft executives are not an appropriate escalation point for customer service issues. Customers experiencing issues with their Xbox 360 console should contact Xbox Customer Service. Our customer service team is well equipped to ensure that the repair process goes smoothly.

That said, Microsoft stands behind its products and takes responsibility to ensure that every Xbox 360 console owner continues to have a fantastic gaming experience. We are continually improving the design and performance of the Xbox 360 consoles to decrease the likelihood that a customer will experience the three flashing red lights. In the event they do, they are covered for three years under our extended warranty.

Wow, can you imagine the tongue lashing the likely tsunami of angry emails spurred? Gates, I suspect, may be retired, but he's not THAT retired.

Emailing Bill Gates Results in New Xbox [Consumerist]

I was one of the first to get an Xbox 360 when they came out, paying way more than I should have. I had problems with the console right out of the box and after weeks of haggling with their normal customer service department, I was contacted by their escalation department. Within a week, my problems were solved and they sent me a bunch of free stuff (games & controllers). Fast forward two years, and I'm having the same problem. I emailed both Bill Gates and Kathleen Hogan(Corporate Vice President, Worldwide Customer Service, Support and Customer and Partner Experience) yesterday...

I was contacted within twenty-four hours from the escalation department and a new console is on its way.

In doing a little bit of research, I figured out the email addresses for both and am providing them for your loyal readers. The link I am including will also provide the entire corporate teams names and titles.

khoganATmicrosoft.com
billgATmicrosoft.com
Microsoft Executives and Images

You know what I'll tell you. I will look like I'm full of shit if I tell you... I went to the bathroom, and the person next to me was Bill Gates. So, I had more than eye contact. Well, no contact. No, no, there wasn't any contact, right. But, you know, it's kind of a weird situation. You're kinda like, 'I know this guy.' There was no bodyguard or nothing there... That's a true story.

Sure Microsoft's recent Xbox Live issues ticked off a bunch of new Xbox 360 owners and led to the company promising to hand out a free game down the line, but it was really just a hiccup says Bill Gates in a recent interview with sister site Gizmodo.

Actually we're not entirely sure what he says. He seems to start speaking tongues halfway into his whole reliability-issue-was-a-hiccup comment. He says something about downloading curve, or something about him, or maybe he mentions peanuts, it's hard to say. But he definitely does call the Live reliability issue a hiccup. Can anyone else make sense of the full comment? Maybe he's spilling some beans about why Live was out. This is what I got:

Xbox live, which was immensely risky, we hadn't been in the hardware business. We even had a hiccup in terms of ahhhhh... me not downloading curve... on that one reliability issue we ran into it. But Xbox alone has been fantastic success. A huge asset for the company.

BIll Gates Explains the Difference Between Microsoft and Apple [Gizmodo]

6:40: Bill is now showing a humorous video—which is uncharacteristically and genuinely funny—about Bill's last day of full time responsibilities at MS, complete with cameos from Brian Williams, Steve Ballmer, Robbie Bach and... Matthew McConaughey as his high as a kite personal trainer. Yup, there's Jay Z producing a track from Bill. Oh no, it's Bono. Bill's rockin' an Xbox 360 wireless controller in an audition of sorts with Bono.

The cameos continue—Steven Spielberg, Jon Stewart, Napoleon Dynamite, Hillary Clinton, Barack Obama, Al Gore. This thing must've cost a fortune.

Make with the Xboxes and stuff already, Bill!

6:52 Bill's talking about "Connected Experiences", highlighting products like laptops, Xbox 360s, Zunes, handheld devices, moving on to emerging technologies and the future of displays and the company's own Surface tech. 3D environments for Web experiences, including hi-def video and audio, integrated with a handheld, with a prototype shown on screen, will be the next step in consumer electronics.

6:57 He moves on to human interactivity with devices, the natural interface, namedropping the iPhone's touchscreen interface (and Surface's, natch) and Sync, the voice controlled in-car system the company is pushing. He keeps a stiff upper lip about Vista, pointing out the number of users and the Windows mobile platform.

7:01 One of Bill's cohorts, Mika, takes over for a few minutes. She's talking up Live single sign in, starting off with Windows Live calendar. Next up is Windows Live Events, which couldn't look any more exactly like an Evite. I can't believe she hasn't turned off that grating "click.wav" navigation sound. Now she's on about Windows Live Photo Gallery. She pieces together a panoramic photo from a handful of JPEGs. It's all very on-the-go and seamless, of course. You'll be sharing photos with friends and family in no time, ideally.

7:05 Bill's back, talking about a fantasy world in which he snowboards with other Microsoft execs. He's got a Surface display in front of him with a retail mock-up from a snowboard shop, applying paintjobs, decals, for a custom job. Wonder if the Forza Motorsport team consulted. Trying to keep this on-topic! He places his Windows Mobile phone on the Surface and sends his design to his snowboarding buddies. Synergy!!

7:08 Silverlight, the Flash competitor of sorts, is given some screen time. Bill announces that partner NBC will be using Silverlight for broadcasting via the Web for events like Live Earth and the 2008 Olympic Games via MSN. Bob Costas has visions of the "ultimate digital destination on the Web." A joke follows.

7:12 Robbie Bach, president of the entertainment devices division is up next. Hopefully, he'll talk about lots of Xbox 360 stuff! Bach talks up Connected Entertainment, too, kicking off with gaming. "Windows Vista gaming has continue to grow and be strong," he says. He reiterates the 17.7 million Xbox 360s sold and $3.5 billion plus in business for the final quarter of 2007. Better than Wii, he says, and better than Sony. 10 million registered Xbox Live members. He has two very important announcements, with ABC and Disney bringing their shows—Lost, Hannah Montana, Desperate Housewives—to Live and MGM bringing films to Live. That includes The Terminator and...well, that's all you really need to know, unless Legally Blonde does something for you.

7:15 Bach announces that Samsung, HP will add Media Center extender functionality to their devices. Microsoft Mediaroom has some 1 million "screens" using the service. Interactive applications for programming from NASCAR, CNN and Showtime allows for users to customize programming and interact with live broadcasts. British Telecom has partnered with MS to sell Xbox 360s as gaming devices and set top boxes.

7:20Zune is up, with Robbie giving it props for its late year revision. He's talking up the Social service, but lobs to Molly O'Donnell for the details. Molly welcomes us to it. She's "GrooveJasmine" and shows off her Zune Card, which tracks artists, songs and allow for tagging. Hipster music is namedropped as some of Molly's faves. "People powered music discovery" leads us into Bach's own playlist, which includes The Shins (oops! bad timing!).

7:23 Now it's time for Sync, so it's obviously time to drive a crossover vehicle onstage. A Zune is plugged in, with a Windows Mobile device also syncing up contacts. Bach commands Sync to play Gary Numan's "Cars" and sounds a bit surprised to hear it work as expected. Sync upgrades, including auto 911 dialing, are touched on briefly.

7:26 With mobile phones outselling PCs 4-to-1, according to Bach, Windows Mobile is a Big Deal. Molly returns for "say and see" service TellMe. She says "movies" into the phone, which looks, via GPS, at local Las Vegas theaters. Robbie really wants to see Sweeney Todd!! She buys tickets with voice, sends info to Robbie, all with the power of her voice.

7:31 Robbie's about to beat feet, welcoming Bill back onstage for the "big finale." Gates' mobile prototype device features visual recognition of people (recognizes Bach), places (notes the Paramount Theater on the backdrop) and has 3D mapping support, with location information, tapping into contacts and Web data. Bill uses the device to look back on his CES history, including the original Xbox unveiling featuring Duane "The Rock" Johnson.

7:36 Bill and Robbie are about to partake in a Guitar Hero III axe-off. Bach has a ringer though, in TipperQueen, aka Kelly Law-Yone. She's burns through a bit of "Welcome To The Jungle" and volleys to Bill. Of course, Bill has his own ringer. It's "Guitar Hero God" Slash, who seems to be well preserved. He plays a few notes and makes with the contract obligation.

7:38 And that's it. Corporate dog and pony show over! Hope you didn't stay up past your bedtime for this one, folks! Tomorrow should probably be a bit more exciting, when hands-on impressions of games and executive interviews kick off.

Seriously, you need to be watching Bill Gates' farewell speech at CES. I'm sure news is coming, but that picture up there, that's all you need. If you want actual news out of the speech make sure to check out Mike's Liveblogging here.

Gates Speech [Microsoft]

Also included in the Ultimate, according to Stuff? A 320GB hard drive and HD-DVD drive. While we have our doubts about the authenticity of the details, the news seems a bit too matter of fact to ring false. Is someone at Stuff simply letting the cat out of the bag early? Perhaps we'll know more this Sunday, when we report directly from CES '08.

BIG IN 2008 - Xbox Ultimate [Stuff - thanks, Richard!]

Bill Gates might be making an Xbox 360 2.0 announcement at his CES keynote swan song, the Seattle Times' Brier Dudley predicts in a column today.

While I'm not totally on-board with his prediction for Gates' 360 announcements at CES this weekend, I agree with the main thrust. Dudley believes that after doing some inevitable crowing Gates will wow the crowds with an announcement that Microsoft is preparing to license the 360 platform to select consumer electronic companies.

In particular, Microsoft could work with Toshiba to develop a digital video recorder with a hard-drive, high-definition HD-DVD drive and Xbox gaming capabilities. They're already allied against Sony and other backers of the Blu-ray DVD format, and Toshiba could help Xbox finally penetrate the Japanese market.

Microsoft could also make a splash by announcing plans to give the Xbox 360 an internal HD-DVD drive, putting it on par with Sony's PlayStation 3 that has a built-in Blu-ray drive.

I know that when I met with Gates last year at CES he was all about an IPTV 360 so we know the concept of licensing the 360 to consumer product folks has been in the works for awhile, even if it's only to cable companies. Teaming up with a company to add DVR functionality also seems like an almost no-brainer. In fact, back with the 360 first launched I asked an exec about that very thing, mostly because of the buttons available on the 360's big universal remote, and was told that it was an idea they were playing around with. And built-in HD-DVD for some models? Sure why not. Obviously the format remains a contender, so it makes sense that Microsoft finally throw a bit more of their weight into the format war. It's also interesting to note that the add-on seems to getting cleared out through sales.

What I suspect will happen is that Gates will have some sort of general announcement about a deal with a cable provider or providers for a 360 featuring IPTV and perhaps a DVR to boot.. and that about five minutes later my brother will call me up super pissed that he bought a 360 without that feature built in.

Visions of Gates' keynote swan song [Seattle Times]

CES 08 promises to be another Microsoft dominated affair, with Mr. Bill Gates delivering the opening keynote the night before the show kicks off proper. Sony will be there, too, but will represent gaming as part of their overall consumer electronics line-up.

And before you get too excited about the prospect of a post-holiday tradeshow packed with exciting announcements, keep in mind that the "major gaming exhibitors" promised by the CEA are Commodore Gaming, Entropia Universe, Red Lion Interactive, Shuttle Computers, War Machine, LumiSource, Red Beard and InterAction Laboratories.

Would you like a press release? Well, here you go.

Gaming Technologies Expand Presence At The 2008 International CES

CES Gaming Showcase to Feature Wide Variety of Gaming Technologies

Arlington, Va., October 29, 2007 - The 2008 International CES®, the world's largest consumer technology tradeshow, will feature gaming hardware and software, in one central location, including advancements in online and PC gaming in conjunction with the entire range of consumer electronics products at its Gaming Showcase. The International CES returns to Las Vegas, January 7-10.

The latest in gaming technology will be prominently featured at CES, as the exhibit space for gaming expands by more than 65 percent this year over 2007. Total revenues from the game category are forecasted to reach $18.3 billion in 2008, up from $15.4 billion in 2007.

"Attendees at the 2008 International CES will be among the first to experience the latest products and trends changing the shape of the gaming market," said Karen Chupka, senior vice president, events and conferences, CEA. "With the CES Gaming Showcase, featuring top gaming companies from around the world in a central, easy to visit location, conference sessions and other special gaming events, the 2008 International CES is the global hub for the latest trends emerging on the gaming market."

CES' major gaming exhibitors include: Commodore Gaming, Entropia Universe, Red Lion Interactive, Shuttle Computers and War Machine, all exhibiting at CES for the first time this year, along with CES veterans LumiSource, Red Beard and InterAction Laboratories. Microsoft and Sony will also feature the latest developments in the gaming world at their respective booths.

Bill Gates, Chairman of Microsoft Corp., producer of the Xbox, which launched at CES in 2001, will once again deliver the opening CES Keynote address at 6:30 p.m. on Sunday, January 6.

Gamers will want to check out the latest gaming hot spots:

* CES Game Power Conference Partner Program - Gaming is a CE powerhouse. Its variety of mobile and home-based platforms, its infinite possibilities for content, and its appeal to virtually any demographic make it a dream medium for device manufacturers, content creators and marketers. Gaming now rivals film and television, and some titles have earned the status of cultural icon. These sessions bring you into the world of gaming creativity, platforms, business opportunities and marketing strategies.
* The Sandbox Summit: A Playdate with Technology Partner Program - Jump into the world of digital kids at the Sandbox Summit. Get a handle on the toys, trends and products that are shaping the way kids play today. Join the PLAYOFFS, where digital natives go head to head; then move on to the Sands' exhibition to test drive the gear that's defining the next generation.
* CES Mobile Entertainment Partner Program - Mobile entertainment isn't merely a CE category; it's a phenomenon. The advances in technologies, platforms, devices, content and consumer sophistication add up to one of the most compelling success stories the CE industry has ever seen. Experience breakthroughs in personalized mobile: the video, music, gaming and communications experience - search, widgets, virtual worlds, messaging and advertising
* Home and Lifestyle Entertainment Knowledge Track - Consumers want their entertainment real, dynamic and accessible. Learn what and how they'll be watching, listening and playing from the comfort of their homes. Plus look into the drive for gaming in 2008 and the possibilities of home theater in 3D.
* Blu-ray Disc TechZone: Blu-ray Disc is supported by more CE, PC, gaming and entertainment companies than any other HD format, offering consumers a broad range of hardware and content to choose from, as well as the ability to enjoy Blu-ray discs (and existing DVDs) in more players, PC and gaming consoles.
* HD DVD TechZone: HD DVD is based on the original DVD format, taking the best features of DVD and adding a new layer of interactivity that allows for never-before-seen movie experiences. With nearly 150 titles available by the end of 2006, and with HD DVD players for the living room, the PC, and for your Xbox 360 on the market today or in time for holidays, HD DVD provides an easy, affordable transition to high definition.

For more news on the 2008 International CES before, during and after the show, including information on CES exhibitors, conference sessions and TechZones, visit www.CESweb.org .

Last week, when Microsoft's Bill Gates and Apple's Steve Jobs got together at conference All Things D, Gates further hinted at what direction Microsoft was going, game-wise. And that direction is? Gates explains:

Software is doing vision and so, you know, imagine a game machine where you're just going to pick up the bat and swing it or the tennis racket and swing it.

Um, kinda like the Wii?

No, that's not it. You can't pick up your tennis racket. And swing it.

Picking up my actual tennis racket and swinging it? We have a name for that Bill, and it's called "tennis." Brian Ashcraft

All Things Digital [D5 Thanks Boone!]

Boxer Albert Liaw got hit a few too many times. After suffering a stroke and brain injury, 34 year-old Liaw was left in a wheelchair with slowed speech and little movement in his left arm. The Glenrose Rehabilitation Hospital is using the Nintendo Wii to help patients like Liaw recover. Instead of real world rehabilitation like throwing a ball or stretching putty, patients are guided through rounds of Wii Sports with help from therapists. They forget about their pain and simply enjoy playing the games — Sometimes for hours at a time! Virtual reality rehab expert and Rutgers University professor Dr. Griogore Burdea remarks:

This is pioneering work. ... Bill Gates (of Microsoft) would be wise to sponsor this kind of research.

Snap! There's even talk of having therapists monitoring remotely via Nintendo's online service and presumably using, err, Friend Codes. Heh. Brian Ashcraft

Wii Helps People Get Better [Edmonton Journal via VGB]

At the time, we had no idea that we'd be attending the industry's final decadent blowout. We'd have taken a moment to pause, to reflect, to appreciate the sights and the stench of a Los Angeles Convention Center packed with 60,000 attendees.

E3 taught us many things. We were horrified to learn the PLAYSTATION 3 was to be priced at $599, yet pleased that it would ship worldwide by November 17th. How naive we were then.

We had just seen the Halo 3 trailer. Witnessed the Super Smash Bros. Brawl reveal. We'd been subjected to "massive damage", "Riiiiiidge Racer!" and Bill Gates paralyzing keynote and we didn't think we could take it anymore.

We relished in our first hands-on experience with the Nintendo Wii remote. We played Super Mario Galaxy, Guitar Hero II, Metroid Prime 3, Elite Beat Agents and Resistance: Fall of Man all for the first time. I recall the horrible bus ride home from the Sony party, ready to vomit into my free Ogio luggage.

With the new, slimmed down E3 still two months away, there's plenty of time to remember the insanity, the sheer pleasure of dozens of game announcements all occuring over the course of five days. Won't you share them with me in the comments? Michael McWhertor

Microsoft's Bill Gates duked it out in Mexico with Barcelona defender Rafael Marquez on the Xbox 360. The exec was visiting the country to mark Microsoft's 20th anniversary there. The competition was displayed on three large screens above a stage where the two battled with Marquez beating Gates 2-1. Before the match, the soccer pro asked Gates if he was ready. The chairman replied:

I wouldn't bet all of my money on it.

Half of it would've been fine. A tenth even. Brian Ashcraft

Gates Loses [Yahoo via Joystiq]

Aw, Bill. Why'd you have to go and further emasculate the tens of thousands of male teens and twenty-somethings who own Viva Pi ata? I knew there was a reason I didn't buy this game. I'm neither young nor female nor do I garden. Michael McWhertor

Unfortunately, Bill doesn't wax much on video gaming, but Jon Stewart cracks enough jokes about internet porn and guessing Gates' log in and password to keep us interested. Michael McWhertor

Bill Gates was on hand at the British Library's special Windows Vista launch event earlier today to tell all the pretty British peoples about his pretty new operating system. He spoke about the history of the Windows operating system, from its beginning 24 years ago as a DOS extending operating environment that borrowed heavily from Apple, to today's standalone multimedia powerhouse that borrows heavily from Apple.

"Now, in Windows Vista, we have the foundation to take things to a whole new level... It's about the digital workstyle and the digital lifestyle, and the number of things that will be revolutionised on top of the Windows Vista platform is quite large."

Oh my god. Mark Wilson spent Saturday night in New York trying to convince me to buy a Mac laptop...I think he infected me! The bastard! There's only one thing for me to do. I've got Vista waiting on my computer desk at home, ready to revolutionize the way I play games. Slowly. Michael Fahey

Gates provides wow factor at Vista launch [GamesIndustry.biz]

• On strategy

We wanted to be the guy with the small box that costs less. We wanted to have the most compelling or better than anyone else's box. We wanted to have the most games. We wanted to play to our software strength, and tools and online. We wanted to get most respects, except for the online capability, we wanted to swap positions with Sony. We wanted to not be a year late, not be a big box, not be a more expensive box. How are we doing on that?

• On Sony

They [Sony] were going to have the Cell be the video processor. But they didn't know what they were doing. They said the Cell is the video processor. But they turned to Nvidia at the last minute, but Nvidia can't do embedded DRAM. Go look at the bandwidth problems. Go ask the guys running ... now. They took their year and burned it by not having a decent CPU strategy and then turning to Nvidia at the last minute. It's a very unusual thing. Those processors are isolated from each other.

Hit the jump for his thoughts on Nintendo.

• On Nintendo

Nintendo of course is a competitor... Say to yourself, how in terms of using a game for a long period of time, what kind of accuracy and capability do you want? Look at the classic Nintendo positioning. Look at the graphics. Look at Nintendo's execution in terms of online capability. We have this thing that nobody has ever seen before. When you say to your friend, hey let's play online, you say then you have to buy an Xbox. That's what 10 million people say. If you want to play online, get an Xbox. We're not standing still. Look at what you saw today connecting up the world to the Windows PC. Do you expect Nintendo to rev up a team to create cross-device gaming and tool kits to develop those things? Not very likely. We clearly think that Nintendo did some things right.

• On HD-DVD

It's good stuff. I love watching it. I download movies too.

Downloading too, huh Bill? We're all proud of you. Brian Ashcraft

Gates CES Interview [Mercury News]

Veiled jab at Sony or flat-out contradiction? Brian Ashcraft

Gates Talks Nintendo [Go Nintendo]

I posted up some gems from the interview on Sunday. Here's the whole thing in video form. Sexy. Brian Crecente

By: Brian Crecente

The interview was, as I said earlier, a bit fragmented due to the nature of the forum. When you get five geeks to sit around the table with Bill Gates, chances are they aren't going to want to all talk about the same things.

While Gates spent a bulk of the time talking about stuff as varied as his charity work (it's going to blossom when he semi-retires next summer), the amount of spam assaulting his mailbox (next to none recently) and his penchant for speeding, yet not dying when he was younger. (Yes, that old gem.)

Gates told the small group that Microsoft has always been about software and that despite their recent jump into some hardware, always will be.

"Microsoft has always been about software that empowers people," he said. "What can happen over the next ten years is probably even bigger than what's happened over the entire history as we get speech and vision just getting rid of constraints: Storage constraints, resolution constraints."

"Microsoft was a software company in 1975 well be a software company 20 years from now, that's what we are good at that's our unique contribution."

He did touch a few times on gaming and for the most part what he said was direct and interesting. Gates, it turns out, is a pretty personable guy.

I even got him to laugh when I asked him to take a picture with me.

Me: Do you mind if I get my picture with you? Last one, promise.
Gates: Sure, though no one ever stops the next person from getting a picture with me.
Me: Give me a fork and a spoon and I'll fight them off for you.

I crack myself up, and at least slightly amuse Gates.

I decided to break down the chat into a group of stories to make it more digestible:

Gates on Vision and Live
Gates the Gamer
Zune is the Xbox of Music
Gates: Xbox is a PC

Also, don't forget to check out our in-person chat with Gates. In it he talks about the new push for the Xbox team, the Xbox as PC trojan horse, how Zune is following the Xbox model and his own personal gaming habits.

CES 06 Keynote

Hardcore gaming, it seems, isn't his thing, instead he's more of an online Bridge player.

"I'm not that much of an online player except on some goofy things like Zuma," he said. "I'm not a great Halo 2 player. Project Gotham I'm decent at. Uno I don't play much and when I do play online its much more where I arrange with friends to play."

"The truth is, my biggest online game is not an Xbox game, it's online bridge," he said. "A friend who lives here in Las Vegas has a site called Bridge Base that I'm on quite a bit. I play with Warren Buffett.
"We don't play for money."

Yeah, they play for souls. Brian Crecente

"Zune is very analogous to Xbox One," he said. "That is, a very innovative product with some identifiable features that move the category forward: The larger screen, the WiFi capabilities, sending music around."

"Even more than Xbox, we can upgrade a lot of things we are going to do in the future. For example, we could let you buy music right there on the device. And there are a ton of more things we can do because it is software driven and has a fair bit of capacity." Brian Crecente

"The reason we got into Xbox was not just for gaming," he said. "It's a general purpose computer. In terms of the first generation in particular, where we were so known as a PC company, the need to make clear how we were prioritizing the needs of demanding gamers, that was super important.

"We wouldn't have done it if it was just a gaming device," he said. "We wouldn't have gone into the category at all. It was strategically getting into the living room. This is not some big secret, Sony says the same things."

Gates added that before Microsoft could talk about that though, they had to establish their system as being gaming centric, earn themselves gaming cred. Now that they have established the brand, Gates said, Microsoft feels more confident in branching out with the console.

This year, he said, is a "huge milestone" for the Xbox, because it has gone from a gaming device to something much more.

"When you talk about convergence, its the first device you can say that really say this is convergence this is real," he said.

Despite Microsoft's attention to consoles, Gates and the company haven't and won't give up on the PC gaming market, he said.

The two, Gates believe, can co-exist.

"I can stick up for both the PC model where you don't pay any royalties, you can introduce games without asking anybody, that's a great thing. And you will see a lot of innovation," he said. "PC gaming is where you will see that really cutting edge high-end type stuff happening. As the Xbox gets cheaper and cheaper some very cool things happen there."

"But both of these models, even in the living room are still very, I think very important. The kind of openness and variety of the PC, and then the kind of very inexpensive deep integration that Xbox represents. Really bootstrapping off of video gaming but being far more than that." Brian Crecente

"Vision is huge, I mean it's just absolutely gigantic it terms of knowing who's there are they paying attention...," he said.

"I didn't see (Eye of Judgement at E3), but the Eye Toy is a good example of how even in gaming the idea of "OK I'm swinging a bat or dancing..." will become a big deal in gaming."

Gates said that just like voice is becoming an important and necessary part of online gaming now, soon video imaging will as well.

"...and I don't mean just the video conferencing,... I mean the actual software analysis," he said. "There is a lot of work between the Xbox team and Microsoft research on that."

While vision might be the future, it seems that making things "Live" is very much the present.

"That's a very big deal," he said. "If you go into Microsoft and say what's the thing that when Ballmer shows up, Bill shows up, Ray shows up they just try to hammer into your head. It's Live, Live, Live," he said. "We have to get Windows more Live enabled, office more Live enabled."

"We have to get some of the online properties more integrated. We got to connect the phone, the Xbox, the PC, so Live is sort of this big focus.... making sure we stun people with the Live platform."

Brian Crecente

I just got out of the half-hour-ish lunch with Bill Gates. Interesting guy. He seems most at home, not on a stage pitching a product or his company, but sitting around a table with a bunch of fellow geeks.

Joining us were Brian Lam from Gizmodo, Chris Grant from Joystiq, Ryan Block from Engadget and Bobby Scobel.

While I enjoyed the time with Gates, the crowd was so diverse it was very hard to dig too deep into gaming stuff. Instead, much of the discussion was taken up with questions about PC power use, vertical integration of Microsoft products and stuff I'll be able to tell you much more about at 7:30 p.m. Mountain.

I'm working through my notes now to pluck the interesting flotsam and jetsam of the conversation from the sea of otherwise white noise. Check back in a bit for the results. Brian Crecente

So in about one hour I will be sitting down with Bill Gates (yes, that Bill Gates) and four other bloggers to talk about everything. Most of which I can post straight away, though I'm told some of the info will be under embargo until after his keynote.

This is, or course, what roused me from my slumber in the cold confines of Denver Friday. There are only a handful of people who I would jump on a plane to interview on such short notice and Gates likely tops that list.

Fan or not, for good or for bad, the man has helped shape the word we live in. Brian Crecente

Just because Bill Gates gives money to charities like disease prevention, college scholarships and the Xbox 360, doesn't mean he's gone soft. Far from it. He's still out for blood. Just listen to what Gates tells C|Net about the current console war with Sony:

I wouldn't change positions with them in a million years. I mean, we know what it's like to be a year late. We feel great about the position that we're in. And, of course, they're going to sell a lot in Japan.

You know, Sony can make 80,000 bricks, and people would buy them. So the real competition—you're going to see the impact of our innovation and all the momentum we have in Christmas 2007. This Christmas, the story is: Xbox 360 is going to sell super-well, and they'll sell the rounding error amounts they can make.

And if the original Xbox is anything to go by, Microsoft knows LOTS about making bricks. Brian Ashcraft

Gates Is Happy, Still Rich [C|Net via 1Up]

Jay doesn't do fighting games. He's an avid gamer. He's a Madden fan. He's a great friend of mine. But that's not something he does.

There's one word to describe individuals unwilling to lend their likeness to video games in which they get beat up: Wuss. Brian Ashcraft

Jay's A Lover, Not A Fighter [MTV]

One goal down, now can Microsoft hit the lead over the Playstation 3 that Bill Gates set for them at this year's E3? And I quote:

"We will have a ten million unit headstart with the Xbox 360"

That means ten million Xbox 360s by mid-September or, as I like to say when I hit the casinos, they're gonna have to double down in less than three months. I'm thinking they can't even manufacture that many.

I'm thinking that the best they can hope to do is to hit seven to eight million if they're lucky and that's nothing to sneeze at. Brian Crecente

Xbox 360 Shipments Hit the 5 Million Mark [Arstechnica]

Didn't Microsoft mention something about that? I think so. Oh here it is. Bill Gates said—"radiant with bloodlust" according to Time magazine—that "It's perfect. The day Sony launches, and they walk right into Halo 3."

Now, keep this in mind: Best Buy has had the following previous release dates for Halo 3 - 11/16/2005 and 5/15/2006. Maybe they've got it right this time, but I wouldn't recommend Xbox fanatics hold anyone to this date. Michael McWhertor

Halo 3: Xbox 360 [via Flicker Gaming]

The mysteriously sideburn-free, former Tiger Beat centerfold Bill Gates is finally being put out to pasture, with screaming ape Steve Ballmer stepping up to the challenge with freshly-dampened pitstains and a glossy scalp. Alas, as the Darth Vader-like egg-throne closes over Ballmer's kindly visage, rumblings are already afoot! Do you have the chops, Ballmer?!

"The direction they've laid out has not impressed investors," says Hall, chief operating officer of Fredric E. Russell Investment Management. "We need the old Microsoft with the direction and vision they had - Gates's vision."

Terrifying proclaimations from experts in the field. The Sydney Morning Herald questions Ballmer's spending, MS's apparent lack of focus, and general tooth-length of late. When was the last time you were truly excited by an impending Microsoft product? Yeah, me too. Eliza gauger

Microsoft Losing Its Edge [Sydney Morning Herald]

Xbox overlord Bill Gates announced that he'll be stepping down from his full-time position at Microsoft to focus on his charitable efforts. Considering that I still don't have my hands on a complimentary Xbox 360, I'm crying foul on his ability to give 'til it hurts.

But Peter Moore and crew are not giving up on Xbox 360 backwards compatability. No, sir! Pete actually admitted that BC is important to MS. But the proof is in the downloadable pudding, as some twenty-odd titles (mostly crap) were added to the growing list of supported original Xbox games.

In some wacky "Engrish"-style hilarity, Sony looks like they'll be firing their PS3 controller copywriter after this sperring spelling mistake was caught by an eagle-eyed Kotaku reader.

Blizzard banned some 30,000 World of Warcraft accounts, citing illegal third-party tools used for gold farming. In other account news, I deleted my WoW account after not having played for 4 months. A great weight has been lifted from my life and debit card.

On the positive PC side, Half-Life 2 Episode II details started to leak out of Valve, courtesy of the current PC Gamer. Check out the summary for more.

Finally, there were so many video highlights this week, here's a big long list of pure fun.

• Game Over! Stop-Motion Food Rocks Frogger
• The Greatest 5 Yr.-Old DDR Dancer Evar
• Super Mario Bros: Beat Box Edition
• GameLife Show Episode Five
• Life According to Space Invaders

Microsoft founder Bill Gates announced today that he will not handle Microsoft's day-to-day operations and work only "part-time". Instead, he will concentrate more on his charitable organization, the Bill and Melinda Gates Foundation, which focuses on global health and education. In a press conference today, Gates said:

I've decided that two years from today, I will reorganize my personal priorities. I have one of the best jobs in the world. I believe with great wealth comes great responsibility - the responsibility to give back to society and make sure those resources are given back in the best possible way, to those in need. It's not a retirement, it's a reordering of my priorities.

A two-year lead gives Gates enough time to work with his successors and ensure the transfer is smooth. Brian Ashcraft

More Here [CNN Money] Thanks, Corey!

We are looking at various ways to bring more to that [handheld] space. There is a lot yet that hasn't been done.

Gates also compared the 360 to the PlayStation 2, saying that that the smaller and cheaper Sony console came out before huge-assed first Xbox. He then talked about how great Xbox Live was and probably felt very, very smug inside.

Isn't that picture from the conference just horrible? Brian Ashcraft

Full Post Here [PC Mag] Thanks, Andy!

Stephen Totilo sat down with Bill " I could buy Tahiti with my pocket change" Gates right after his disasterous appearance at E3. (Gates' not Totilo's) They two chatted about a lot of things including Gates level of involvement with the console team, the Wii-mote and handheld gaming.

Here are some choice excerpts:

Gates gave his interview a day after Sony had publicly joined Nintendo in announcing that its console would have a motion-sensitive controller. Don't expect the 360 to follow the Nintendo Wii and PlayStation 3 into that field. Gates wasn't too impressed with the whole concept.

"There's room for innovation here, but moving that controller around — it's something that's not mainstream for most games," he said. He recalled a Microsoft-made controller from several years ago that allowed 3-D movement. "It's tough because sometimes you move the controller, and you don't [mean] to fly into the ground. You just want to put the controller down," he said. "People aren't that good at totally standing still. Even pilots actually sit in a chair when they do their flying. So there's a lot to be learned about these controllers."

...

The Microsoft chief's focus on simple games as well as a networked gaming service that connects home and mobile devices naturally leads to the question of when there will be an Xbox Portable or Xboy. Dean Takahashi — the well-sourced San Jose Mercury News reporter and author of the recent behind-the-scenes book "The Xbox 360 Uncloaked" — reported in March that Microsoft is at work on a handheld version of the Xbox.

Gates wasn't coughing up details — just a long-range tease about the inevitability of Microsoft getting involved in the portable market.

"Over time you have to say, will you carry in your pocket a media device and a phone and a gaming device and, say, a tablet device for reading?" It's natural for them to be combined into one device, he said. "People have different blends of that now. The world isn't ready yet for a device that meets all of those needs. But go a few years out, the hardware gets a lot better, we'll be there with the software platform, and I think everybody will just take it for granted that there will be a better device."

Brian Crecente

Bill Gates Wary Of Motion-Sensitive Controllers, Solo Gaming [MTV News]

Thank Microsoft's Gamerscore blog (clever clever) for these two clips from MTV2's coverage of the early anticipated Gears of War. The show airs sometime today in North America and proves beyond a doubt that CliffyB is cool as Christmas. Hit the jump to see footage of Msoft founder Bill Gates feigning gamerspeak. —Brian Ashcraft