Microsoft’s Windows 8 gamble backfires

Microsoft is set to make an embarrassing Windows 8 rework, in a u-turn most are calling as big as the 'new Coke' almost 30 years ago.

With the new operating system now six months old, the software giant has admitted changes are on the way, leaving CEO Steve Ballmer to face the flak following past comments about the program.

After previously claiming he was "betting the company" on the global release of Windows 8 inspired hardware, Ballmer's bold projections has so far failed to halt a rapidly declining PC market.

Speaking during the company's encouraging third quarter results in April, Ballmer insisted all was well within Microsoft, saying at the time:

“While there is still work to do, we are optimistic that the bets we’ve made on Windows devices position us well for the long-term," he said.

But a day after chairman Bill Gates stuck the boot into rivals Apple, an interview with Microsoft's CMO and CFO Tami Reller offered the clearest insight yet to how the company plans to take Windows 8 forward.

Codenamed Microsoft Blue, the update is set to be rolled out later this year, with most expecting Microsoft to restore the Start button to the operating system.

"Windows Blue is a codename for an update that will be available later this year, building on the bold vision set forward with Windows 8 to deliver the next generation of tablets and PCs," Reller told the Windows Blog.

"It will deliver the latest new innovations across an increasingly broad array of form factors of all sizes, display, battery life and performance, while creating new opportunities for our ecosystem.

"It will provide more options for businesses, and give consumers more options for work and play.

"The Windows Blue update is also an opportunity for us to respond to the customer feedback that we’ve been closely listening to since the launch of Windows 8 and Windows RT.

"From a company-wide perspective, Windows Blue is part of a broader effort to advance our devices and services for Microsoft."

After announcing that 60 million licences of Windows 8 had been sold since general availability, Reller was quick to point out that figure has now significantly increased, saying:

"We recently surpassed the 100 million licenses sold mark for Windows 8," she says.

"This number includes Windows licenses that ship on a new tablet or PC, as well as upgrades to Windows 8.

"This is up from the 60 million license number we provided in January.

"We’ve also seen the number of certified devices for Windows 8 and Window RT grow to 2,400 devices, and we’re seeing more and more touch devices in the mix."

Citing Windows 8 is "a big, ambitious change", Reller says Microsoft understands change takes time, but insists the company feels good about the progress since the launch, dismissing recurring talk of a PC market in despair.

"The PC is very much alive and increasingly mobile," Reller insists.

"The PC is also part of a much broader device market of tablets and PCs. Windows 8 was built to fully participate in this broader and increasingly mobile device market.

"The PC part of the market is rapidly evolving to include new convertible devices and amazing new touch laptops, and all-in-ones.

"These new PCs are hitting the market now and into the Back-to-School season, and they are more affordable than ever."

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