Microsoft launches Windows 7, eyes PC sales rebound

By Bill Rigby

NEW YORK (Reuters) - Microsoft Corp launched Windows 7 on Thursday, its most important release in more than a decade, aiming to win back customers disappointed by Vista and strengthen its grip on the PC market.

The world's largest software company, which powers more than 90 percent of personal computers, has received good reviews for the new operating system, which it hopes will grab back the impetus in new technology from rivals Apple Inc and Google Inc.

"It's the first really significant release of Windows in a decade," analyst Brendan Barnicle of Pacific Crest Securities told Reuters Television. "Given the missteps around Vista, people really questioned Microsoft's relevancy in the technology space. So this is a critical first step for Microsoft regaining that credibility."

The new system -- which is faster, less cluttered and has new touch-screen features -- comes almost three years after the launch of Vista, whose complexity frustrated many home users and turned off business customers.

The success of Windows -- which accounts for more than half of Microsoft's profit -- is crucial for Chief Executive Steve Ballmer to revive the company's image as the world's most important software firm.

"There's not much that gets me more fired up than the chance to start selling and delivering," Ballmer told a packed audience at the Windows 7 launch in New York. "You will be unbelievably impressed."

Ballmer and other executives demonstrated a range of new devices showing off Windows 7, from ultra-slim laptops to large touch-screen computers, highlighting a new Kindle book-reading application from Amazon.com Inc and live-streaming CBS television shows.

Windows 7 sales will not immediately impact the bottom line of Microsoft, which is expected to post a lower quarterly profit on Friday.