Judge OKs class action lawsuit vs. Microsoft

A federal judge in Seattle said on Friday consumers may continue a class action lawsuit against Microsoft Corp. because of how it advertised computers loaded with Windows XP as capable of running the Vista operating system.

The lawsuit claimed Microsoft's labeling of some PCs as "Windows Vista Capable" was misleading because many of those computers were not powerful enough to run all of Vista's features, including the "Aero" user interface.

U.S. District Judge Marsha Pechman certified the class action suit but scaled down its scope to focus primarily on whether Microsoft's "Vista Capable" labels created artificial demand for computers during the 2006 holiday shopping season, and inflated prices for computers that couldn't be upgraded to the full-featured version of Vista, which was released at the end of January 2007.

Neither of the two people who filed the original lawsuit participated in a program Microsoft devised to help people who bought new computers before Vista's launch upgrade later to the new operating system, but they argued nonetheless that people who bought "Vista Capable" computers were harmed because they could only run a basic version of Vista.

The judge said if they added a named plaintiff who did take part in Microsoft's "Express Upgrade" program, they could pursue that claim as well.

Microsoft said it was reviewing the ruling.

Judge OKs class action lawsuit vs. Microsoft

A federal judge in Seattle said on Friday consumers may continue a class action lawsuit against Microsoft Corp. because of how it advertised computers loaded with Windows XP as capable of running the Vista operating system.

The lawsuit claimed Microsoft's labeling of some PCs as "Windows Vista Capable" was misleading because many of those computers were not powerful enough to run all of Vista's features, including the "Aero" user interface.

U.S. District Judge Marsha Pechman certified the class action suit but scaled down its scope to focus primarily on whether Microsoft's "Vista Capable" labels created artificial demand for computers during the 2006 holiday shopping season, and inflated prices for computers that couldn't be upgraded to the full-featured version of Vista, which was released at the end of January 2007.

Neither of the two people who filed the original lawsuit participated in a program Microsoft devised to help people who bought new computers before Vista's launch upgrade later to the new operating system, but they argued nonetheless that people who bought "Vista Capable" computers were harmed because they could only run a basic version of Vista.

The judge said if they added a named plaintiff who did take part in Microsoft's "Express Upgrade" program, they could pursue that claim as well.

Microsoft said it was reviewing the ruling.

Microsoft to stop making HD DVD players

Microsoft said it will stop making HD DVD players for its Xbox 360 video game system and said the move won't have a material impact on its video game business, media reported Monday.

Toshiba Corp. ceded the high-definition video format battle to Sony Corp.'s Blu-ray. Toshiba President Atsutoshi Nishida last week estimated about 300,000 people own the Microsoft video player, sold as a separate 130 U.S. dollars add-on for the Xbox 360.

Microsoft said it would continue to provide standard warranty support for its HD DVD players and is looking at how the HD DVD technology it has developed, such as HDi, which adds interactive features to HD DVDs, and its VC-1 video encoding technology, can be applied to other platforms.

"HD DVD is one of the several ways we offer a high definition experience to consumers and we will continue to give consumers the choice to enjoy digital distribution of high definition movies and TV shows directly to their living room, along with playback of the DVD movies they already own," Blair Westlake, a corporate vice president of Microsoft's media and entertainment group, said in a written statement.

Microsoft was one of HD DVD's main backers, along with Intel Corp. and Japanese electronics maker NEC Corp., and its support for the format was seen as a big win for Toshiba's format.

But support for the HD DVD waned as major movie studios — Sony Pictures, Walt Disney Co., News Corp.'s Twentieth Century Fox and Warner Bros. Entertainment — picked blue-ray to distribute high-def DVDs.

Microsoft to offer community-created games on Xbox 360

Microsoft Corp. announced Wednesday that it will offer games developed by hobbyist game developers on the Xbox Live online network.

Seven games, created using XNA Game Studio 2.0, will be available immediately for Xbox 360 users to download from the Xbox Live marketplace. New community-created games will soon be playable by Microsoft's 10 million Xbox Live members.

The games, expected to exceed 1,000 by the end of 2008, would double the size of the Xbox 360's game library.

To distribute a game on the Xbox Live service, game creators must use Microsoft's XNA Game Studio software, which requires a 99 U.S. dollar per-year subscription, or be an XNA Creators Club member. Each game will be vetted for quality and appropriateness by the online community itself.

In addition, Microsoft announced that game developers also will be able to build games for the software maker's Zune digital media players.

The announcement heralds a new push by Microsoft to bring the community closer to the development process. Neither Nintendo nor Sony has announced a similar program for their respective next generation consoles.

Microsoft to offer community-created games on Xbox 360

Microsoft Corp. announced Wednesday that it will offer games developed by hobbyist game developers on the Xbox Live online network.

Seven games, created using XNA Game Studio 2.0, will be available immediately for Xbox 360 users to download from the Xbox Live marketplace. New community-created games will soon be playable by Microsoft's 10 million Xbox Live members.

The games, expected to exceed 1,000 by the end of 2008, would double the size of the Xbox 360's game library.

To distribute a game on the Xbox Live service, game creators must use Microsoft's XNA Game Studio software, which requires a 99 U.S. dollar per-year subscription, or be an XNA Creators Club member. Each game will be vetted for quality and appropriateness by the online community itself.

In addition, Microsoft announced that game developers also will be able to build games for the software maker's Zune digital media players.

The announcement heralds a new push by Microsoft to bring the community closer to the development process. Neither Nintendo nor Sony has announced a similar program for their respective next generation consoles.

Microsoft discloses virtualization move

Microsoft Corp., the world's largest software maker, Monday disclosed its plans to allow more versions of the desktop OS to be virtualized in order to become a major player in a hot field called virtualization.

Microsoft has purchased a start-up called Calista Technologies, which was founded in 2006 and is based in San Jose, California, for an undisclosed sum. It also expanded its partnership with Citrix Systems, according to media reports.

"This is Microsoft coming out and staking the claim that they are serious about virtualization," said Forrester Research analyst Natalie Lambert. "When you think of VMware, you think virtualization. That is going to be a hurdle for Microsoft."

Virtualization is one of the most important developments in the software industry, because it disrupts the traditional business model, which marries one machine to one piece of software, such as an operating system.

The technology allows companies to save on hardware costs by running existing equipment more efficiently, while allowing companies to deploy applications faster without worrying that certain pieces of software will clash with one another.

Microsoft is also relaxing some of its licensing policies to allow use of virtualization software with more versions of its Windows Vista operating system and lowering some fees associated with using the technology.

Google opposes Microsoft's bid to buy Yahoo

Internet search giant Google Inc. Sunday voiced opposition to Microsoft's bid to buy Yahoo Inc.

"Microsoft's hostile bid for Yahoo raises troubling questions," David Drummond, Google's chief legal officer, said in remarks posted online.

Microsoft has offered 44.6 billion U.S. dollars to buy Yahoo Inc. in a bid to gain ground on Google in the Internet's booming search and advertising markets.

If the acquisition materializes, Microsoft and Yahoo would have about 16 percent of the worldwide Internet search market - still far behind Google's 62 percent share, according to comScore Media Metrix.

"This is about more than simply a financial transaction, one company taking over another. It's about preserving the underlying principles of the Internet: openness and innovation."

This was Google's first official reaction to Microsoft's acquisition bid. Google views the possible acquisition as Microsoft's attempt to gain illegal control over the Internet.

"Could Microsoft now attempt to exert the same sort of inappropriate and illegal influence over the Internet that it did with the PC?" Drummond wrote.

He was referring to Microsoft's previous practice of using Windows to help extend the reach of its web browser and other applications - a strategy that triggered a U.S. Justice Department lawsuit alleging that the software maker illegally used its operating system to stifle competition. The dispute ended with a 2002 settlement that required Microsoft to abandon some of its past practices.

Drummond's remarks underscored the online search leader's worries about its two biggest rivals teaming up.

Brad Smith, Microsoft's general counsel, tried to justify the proposed acquisition, saying that preventing Microsoft from buying Yahoo would undermine competition by allowing Google to become even more dominant than it already is on the Internet.

"Microsoft is committed to openness, innovation, and the protection of privacy on the Internet," Smith said. "We believe that the combination of Microsoft and Yahoo will advance these goals," he said.