Thank God There's Windows 7 And The Xbox

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Microsoft’s (MSFT) new search engine, ‘Bing’, doesn’t look like a Google killer. So Microsoft will probably have to do a deal with Yahoo (YHOO) to get its search market share well north of 10%.

But that doesn’t mean the company doesn’t have exciting, important stuff in the hopper. The forthcoming Windows 7, we’ll remind you, looks very good — especially as the company is getting some traction back against Apple (AAPL).

Microsoft is also putting effort into improving its user interface on portable devices. The fact that the forthcoming Zune HD has multi-touch — the “pinch” zoom that Apple made popular with the iPhone — suggests that Windows Mobile 7, expected next year, might be a big improvement.

And Microsoft’s Xbox business is kicking butt, too. The company announced that it’s sold 30 million Xbox 360s globally and has 20 million people subscribed to its Xbox LIVE service. Those are big numbers. Sony is not coming close with the overpriced PS3. And the Xbox 360 is also dubbing as a nice digital set-top box, a potential growth area.

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