Following the announcement earlier this week that Vista Service Pack 1 (SP1) had been shipped to manufacturing, Microsoft Corp. today confirmed that it seeded another build of Windows XP SP3 to a closed set of testers. "Yesterday, we released Windows XP SP3 RC 2 to private beta testers," a Microsoft spokeswoman said in an e-mail. "This release catches the build up on previously released hot fixes and responds to critical feedback from previous betas." Despite the new SP3 release, the final ship date continues to be unknown. Although some reports indicate February 24th or March 23rd as final SP3 release dates, Microsoft continues to claim: "We are targeting 1H [first-half] 2008 for the release of XP SP3 RTM, though our timing will always be based on customer feedback as a first priority," The next major milestone for Windows XP after SP3 ships is June 30, when the nearly 7-year-old operating system is slated to fall off the reseller and retail availability list.

Microsoft informs us that it will release 12 security updates next week on February 12, 2008, matching the patch record set a year ago. Seven of the 12 will be tagged with the company's highest threat ranking - critical. Among the other dozen updates listed in the prepatch notification posted to the Microsoft web site this morning, are three slated for Microsoft Office, three for Windows, two for Internet Information Server (IIS), and one each for Internet Explorer, Microsoft Works, VBScript and JScript, and Active Directory.

The folks over at Redmond are very serious when they say that they're trying to make Windows a product developed with a lot of user feedback. The 'Save XP' petition that we reported on yesterday got some recognition by Microsoft. Beating extreme improbabilities, and documenting one of the few times a petition actually does something, Microsoft acknowledged the users' concerns, and promised that fresh Windows XP licenses will be around as long as partners and customers feel like they need them. In the words of a Microsoft spokesperson...

We're aware of it, but are listening first and foremost to feedback we hear from partners and customers about what makes sense based on their needs. That's what informed our decision to extend the availability of XP initially, and what will continue to guide us.

Tech magazine PC Inpact claims to have the exact Windows release dates, so it is my duty to tell them to you like they are. If this source is correct, we will be seeing Windows Vista SP1 by February 18, and the streamlined Windows XP SP3 by March 23.

Infoworld started a Save XP petition on their website. The main goal of this petition is to get Microsoft to continue handing out Windows XP licenses beyond the June 30 deadline Microsoft put out. Fortunately for Windows XP diehards everywhere, an astounding 75,000 people have signed this petition so far. Infoworld plans on presenting this petition to Microsoft when they reach 100,000 signatures. If you have not already done so, I suggest you sign the petition if you feel that Windows XP should be around a little longer than June 30, 2008.

Here's your update to the whole Microsoft-Yahoo situation: Microsoft may actually not have enough money on them to buy Yahoo outright. Or, even if they do, they somehow see a need to borrow a fair size of money to do this. The reason Microsoft sees the need to borrow money is the current state of negotiations. Yahoo, if they agree to be acquired, wants half the funds as a stock buy-out and half as cash. While Microsoft has $21 billion to spend on such a venture, Yahoo requires about $23 billion, and Microsoft doesn't feel like depleting the whole bank over a business deal.

However, while Microsoft works out loan terms, Microsoft may not need the money after all. Yahoo is seriously considering turning down the offer. Even if they accept any offer to be bought out, Yahoo has stated that they're more likely to accept an offer from Google...

We'll keep you posted as this whole debacle unfolds.

While Microsoft was getting very excited at the prospect of having a product ready to deliver, some people from QA had other thoughts. Apparently, Vista SP1 is not ready for prime time, and Microsoft does not think it will be ready until roughly March. Ironically, the thing that made QA think twice about unleashing Vista SP1 was a report declaring that Vista might have quite a few driver incompatibilities with current machines. And so, instead of finding themselves in the contempt of hundreds of thousands of gamers, hardware enthusiasts, and system integrators everywhere, Microsoft is working hard to make Vista SP1 a very competent product.

The Xbox 360 HD DVD Player price has dropped from $179.99 to $129.99 (U.S. MSRP), Microsoft announced today. This new price is effective immediately in the United States, Canada, Australia and New Zealand. Microsoft is also offering the player with five free HD-DVD movies.

Some of you may have heard of Microsoft's Surface technology, which is basically a beautiful and masterful 3D interface built for tabletops. A more informative (and slightly comedic) introduction can be found here. Basically, Steve Balmer took a look at this in-development technology, saw a huge consumer response to it, and decided it was high-time to accelerate development and production. Hence, instead of waiting until 2011 for this thing to come out, we may be seeing it much sooner. Exactly how soon is not known at this point, but it will definitely be sooner. The business version of this technology will be unleashed sometime this Spring, if all goes well.

Microsoft has just announced a pair of new wireless mices. Unfortunately the Microsoft Hardware home hasn't been updated for some time now, and the source of the news does not give much information either. We only know that both the Wireless Laser Mouse 6000 and Wireless Laser Mouse 7000 are cordless devices, use the Microsoft HD Lasers and have a few Vista-friendly buttons. You can pick them up in March for $50 and $70, respectively.

Besides Windows Vista SP1, Microsoft Windows Server 2008 was also released to manufacturing today and will be available to customers on March 1st, starting with Microsoft Volume Licensing customers. Microsoft Volume Licensing customers with active Microsoft Software Assurance coverage or an Enterprise Agreement will be able to download the new Server software toward the end of February as part of the joint Microsoft SQL Server 2008 and Visual Studio 2008 Heroes Happen Here launch event.

Prison sentences handed down to counterfeiters by a Taipei, Taiwan, court mark the end of a string of successful prosecutions by international law enforcement agencies, bringing a global software counterfeiting ring to a final halt. Between 1997 and 2003, Huang Jer-sheng, owner of the Taipei-based distributor Maximus Technology Inc., and his associates were responsible for the production and distribution of more than 90 percent of the high-quality counterfeit Microsoft software products either seized by law enforcement or test-purchased around the world.

After hosting several public and private betas of Windows Vista SP1, it would seem as though the final code is finally ready. In fact, the code has supposedly been leaked and put on various torrents. When questioned as to whether or not the leaked code is final, Microsoft people didn't really have much to say. Regardless of whether or not pirates got a hold of SP1, Microsoft declared they made an RTM code earlier today. It is unclear whether or not they will release it today, but sources agree that a launch is imminent.

Microsoft said Monday it will launch a new version of its Xbox 360 game console in Japan on March 6. The company said the model, which targets new users, was launched in the U.S. at the end of last year. In Japan, its Y27,800 price tag will match that of existing models, but it will come equipped with more extras, including an extra 256MB memory unit, wireless controller and game pack. Microsoft's belated release of its latest console in Japan comes as the Xbox 360 continues to be outsold by Nintendo Co.'s Wii and Sony Corp.'s PlayStation 3 in the country.

As most of you know, Yahoo is seriously considering letting Microsoft buy them. However, we cannot forget that more than just Microsoft would benefit if Yahoo was to consider letting someone buy them. Google would also be pretty pleased if they could get Yahoo in their pocket, much like YouTube. However, instead of place a bid in, Google sent some nasty comments Microsoft's way.

Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC? While the Internet rewards competitive innovation, Microsoft has frequently sought to establish proprietary monopolies-and then leverage its dominance into new, adjacent markets.

Please follow the source article for the full statement Google put out regarding this possible merger/purchase.

Windows Vista is known for a lot of things. Among them is eating memory, both in storage and RAM, like a fat kid through cake. The folks who made VLite, a program designed to let you custom-build a Windows Vista disk without a lot of things you don't need, were very proud of what their program was doing for people who liked a streamlined operating system. Unfortunately for VLite, Microsoft has sent a look of scorn at the makers of the software. A public outcry asks, why? After all, VLite keeps people using Vista, instead of letting them come to the conclusion that XP is more streamlined, and should be used in place of Vista. However, Microsoft's reason for not liking VLite actually makes a lot of sense. When users go merrily chopping programs and processes willy-nilly, they risk keeping Windows Vista from updating properly in the future. Basically, Windows Update would try to update a component that isn't there, making parts of Windows unstable, and possibly bricking the whole system.

As long as you understand the risks, though, and know what you're doing, using VLite should not be a problem, and Microsoft is not going to make VLite copies of Vista illegal.

Microsoft Corp. today announced that it has made a proposal to the Yahoo! Inc. Board of Directors to acquire all the outstanding shares of Yahoo! common stock for per share consideration of $31 representing a total equity value of approximately $44.6 billion. Microsoft's proposal would allow the Yahoo! shareholders to elect to receive cash or a fixed number of shares of Microsoft common stock, with the total consideration payable to Yahoo! shareholders consisting of one-half cash and one-half Microsoft common stock. The offer represents a 62 percent premium above the closing price of Yahoo! common stock on Jan. 31, 2008.

Microsoft's Entertainment and Devices division, the portion of the company responsible for the Xbox line of video game consoles, has brought in profits of over $500 million for the first time. Financial documents from Microsoft reveal that, during the first six months of the company's 2008 fiscal year, the entertainment division brought in $4.98 billion in revenue, marking an operating profit of $524 million. During the same time period in the 2007 fiscal year, the division amassed $3.98 billion in revenue but reported a loss of $423 million. Overall the company shipped 4.3 million Xbox 360 units in the quarter, adding up to 17.7 million since shipped launch, with a total of 9.15 million sold in North America. As previously reported, Microsoft reported the whole of its $1.06 billion loss due to the Xbox 360 warranty extension in its 2007 fiscal year.

Microsoft said on Thursday that it has released another updated test version of Windows Vista Service Pack 1. The company said that the new version, dubbed "Windows Vista SP1 RC Refresh 2," has been released to about 15,000 beta testers. The code is not being made available publicly, Microsoft added. The final version is still on track to be finalized this quarter. Microsoft also released "Windows XP SP3 RC Refresh 2" to beta testers on Wednesday. Windows XP SP3 Final is aiming for a release sometime in the first half of this year, but Microsoft noted: "our timing will always be based on customer feedback as a first priority."

Dell and Microsoft Corp. will offer customers a simple way to make a difference in the fight against AIDS in Africa through the purchase of unique (PRODUCT) RED branded personal computers and a printer. Adding to the premium experience, all Dell (PRODUCT) RED PCs are powered by Windows Vista Ultimate (PRODUCT) RED. Dell is the exclusive partner for PCs and peripherals for (PRODUCT) RED.

Dell and Microsoft Corp are teaming up to sell "Red computers", donating up to $80 for every one sold to fund AIDS-fighting drugs in Africa. Dell will start selling two (Red) laptops and one desktop running Microsoft Windows Vista on Friday. The two companies will donate $50 for a laptop and $80 for a desktop to the Global Fund, which finances health programs in Africa. The "Red PCs" will have a distinctive red casing and the Windows interface will feature a red background and sidebar. Microsoft said it expects "several hundred thousand" Red Dell PCs to be sold in 2008.

A new flaw has opened up in Microsoft Excel, which could allow an attacker to compromise a remote user's computer. Microsoft warned this week that an attacker could use the vulnerability to create a malicious Excel file. Users who open an infected file would be subject to having their computer compromised. Users would need to download and open a malicious file for it to have any effect. Once opened, though, the attacker has the ability to remotely access the victim's PC, exposing personal data and other documents. This makes it a serious problem especially for businesses. The vulnerability affects the following versions of Excel: 2000, 2002, Viewer 2003, 2003 Service Pack 2, and Mac Excel 2004. So far Microsoft has not announced when it will be releasing a patch to fix the problem, but it has encouraged users who think they may have been attacked to contact its support line.

According to TG Daily, the next version of Windows (codenamed Blackcomb Vienna) could be scheduled for release as early as the second half of next year. The operating system was originally slated to be launched in 2010, but the latest roadmap from Microsoft gives Windows 7 a release-to-manufacturer (RTM) date of H2 2009. The site is also reporting that an early version of the software, being dubbed "Milestone 1" (M1), has already been shipped to key Microsoft partners. If true, this would mean that Windows Vista will only last as the company's flagship operating system for about three years - compared to the five years of Windows XP.

The games industry managed record sales of $17.9bn in 2007, up 43% from $12.5bn in 2006. The Wii, Xbox 360 and PS3 all saw their most successful sales figures in December, shifting a total of 1.4m, 1.3m and 800,000 units respectively, meaning that the Xbox 360 has now sold 8.5m units since its launch, the Wii 6.3m and the PS3 2.8m. However, the best selling console over Christmas was actually the Nintendo DS, which achieved sales figures of 2.5m in December. Meanwhile, the most successful game last year was Halo 3, which sold 4.82m copies, with Wii Play in second place on 4.12m and Call of Duty 4 in third on 3.04m.

Microsoft Corp.'s Macintosh Business Unit today announced the official availability of Microsoft Office 2008 for Mac at the Macworld Conference & Expo 2008. Office 2008 for Mac is significantly enhanced to provide a simplified user experience that helps beginners and longtime experts alike deliver professional documents that are compatible for co-workers and friends on Macs and PCs. The suite provides the Office tools Mac users rely on, with a Mac-like approach and style. In addition to Office 2008, the Mac BU Web site, Mactopia (www.microsoft.com/mac), features a dramatic transformation to provide an even more resourceful hub for all things Mac BU.