Microsoft's strategy from PCs to Internet

The company entertained analysts at its headquarters giving them a peek into the activities planned in the light of the changed environment. Chief executive Steve Ballmer, along with Ray Ozzie, who is assuming Bill Gates' role of chief software architect, outlined the company's new vision, which lays a lot of emphasis on Windows Live, in online advertising business and in incorporating advertising in games and online video.

Ballmer reminded the analysts that Microsoft has been a desktop company, but this identity is changing. "We're trying to build two new cores, one in online and one in entertainment," he said.