He made his mark at Microsoft as head of the company's worldwide sales force at a time when it seemed everyone hated the company - most of all its customers. In 2 1/2 years Kevin Johnson achieved a miracle: He turned Microsoft's customer satisfaction numbers around.

After that, CEO Steve Ballmer gave Johnson a really hard job: Figure out what to do about Google, which now garners more revenue from online advertising than Microsoft does from Windows.

Microsoft Corp (NasdaqGS:MSFT - News) expects global unit sales of its Windows Mobile software for cellphones to grow at least 50 percent per year in fiscal years 2008 and 2009 as demand for smartphones rises rapidly.

"Fifty percent growth is the minimum," Eddie Wu, the software company's managing director of OEM embedded devices Asia, told Reuters on the sidelines of a news conference on Tuesday.

Today we informed our partners that we are ending the Live Search Books and Live Search Academic projects and that both sites will be taken down next week. Books and scholarly publications will continue to be integrated into our Search results, but not through separate indexes.

Microsoft Corp. today announced it will offer ad-funded cash rebates to customers who find and purchase their favorite products through a new program called Microsoft Live Search cashback. Key partners including eBay, Barnes & Noble.com, Overstock.com, Sears, Zappos.com, and WPP joined Microsoft Chairman Bill Gates at advance08, Microsoft’s annual advertising customer event, to announce their participation in the new program.

The complete Live Search cashback product portfolio includes more than 10 million product offers from more than 700 merchants, including more than 13 of the top 40 U.S. retailers. The company also announced it has delivered a new Live Search travel destination, Live Search Farecast, making it easy for searchers to find the best travel deals on the Web.

“We believe search can offer much more value to consumers and advertisers than it does today, and we see Live Search cashback as an important opportunity to deliver additional value,” Gates said. “Our goal is to make Live Search the most rewarding commercial search destination on the Web. Live Search cashback will help advertisers drive more online sales while giving consumers a new way to stretch their dollars.”

During his keynote address, Gates outlined three areas of focus for the company’s broad search vision:

• Delivering the best search results by continuing to focus on relevancy and selection

• Expanding the role of search around the set of tasks that searchers are most often working to accomplish — including commerce, entertainment, navigation and reference — through improvements in its user experience, intelligent tools and access across devices

• Innovating in the economic model that today powers the search business by rewarding both advertisers and consumers for engagement

Today’s announcements of Live Search cashback and Live Search Farecast signify that commerce queries will be the first of the four tasks on which the company will focus. As part of this “Commercial Search” strategy, Microsoft aims to make Live Search the premier search engine for the growing category of search queries that help consumers conduct research and purchase goods or services, and which are critical to merchants aiming to drive online sales of their products.

Microsoft Corp. is offering customers greater choice and more flexibility among document formats, as well as creating additional opportunities for developer and competitors, by expanding the range of document formats supported in its flagship Office productivity suite.

The 2007 Microsoft Office system already provides support for 20 different document formats within Microsoft Office Word, Office Excel and Office PowerPoint. With the release of Microsoft Office 2007 Service Pack 2 (SP2) scheduled for the first half of 2009, the list will grow to include support for XML Paper Specification (XPS), Portable Document Format (PDF) 1.5, PDF/A and Open Document Format (ODF) v1.1.

When using SP2, customers will be able to open, edit and save documents using ODF and save documents into the XPS and PDF fixed formats from directly within the application without having to install any other code. It will also allow customers to set ODF as the default file format for Office 2007. To also provide ODF support for users of earlier versions of Microsoft Office (Office XP and Office 2003), Microsoft will continue to collaborate with the open source community in the ongoing development of the Open XML-ODF translator project on SourceForge.net.

In addition, Microsoft has defined a road map for its implementation of the newly ratified International Standard ISO/IEC 29500 (Office Open XML). IS29500, which was approved by the International Organization for Standardization (ISO) and International Electrotechnical Commission (IEC) in March, is already substantially supported in Office 2007, and the company plans to update that support in the next major version release of the Microsoft Office system, code-named “Office 14.”

Consistent with its interoperability principles, in which the company committed to work with others toward robust, consistent and interoperable implementations across a broad range of widely deployed products, the company has also announced it will be an active participant in the future evolution of ODF, Open XML, XPS and PDF standards.

Microsoft will join the Organization for the Advancement of Structured Information Standards (OASIS) technical committee working on the next version of ODF and will take part in the ISO/IEC working group being formed to work on ODF maintenance. Microsoft employees will also take part in the ISO/IEC working group that is being formed to maintain Open XML and the ISO/IEC working group that is being formed to improve interoperability between these and other ISO/IEC-recognized document formats. The company will also be an active participant in the ongoing standardization and maintenance activities for XPS and PDF. It will also continue to work with the IT community to promote interoperability between document file formats, including Open XML and ODF, as well as Digital Accessible Information System (DAISY XML), the foundation of the globally accepted DAISY standard for reading and publishing navigable multimedia content.

Microsoft is also committed to providing Office customers with the ability to open, edit and save documents in the Chinese national document file format standard, Uniform Office Format (UOF). The company does so today by supporting the continued development of the UOF-Open XML translator project on SourceForge.net, and will take additional steps to promote the distribution and ease of use of the translator. As UOF develops and achieves market adoption in China, Microsoft will distribute support for this format with Office to its customers in China.

Microsoft's "Live Search cashback" site, set to be unveiled Wednesday, promises to pay back a portion of the purchase price -- ranging from about 2 percent to more than 30 percent -- to people who use it to find designated products and buy them online from participating retailers.

Microsoft Corp has proposed to buy Yahoo Inc's search business and take a minority stake in the Web pioneer, stopping short of a full-out merger, a person familiar with the discussions said on Monday.

As part of the deal, Yahoo would sell its Asian assets including significant minority stakes in Yahoo Japan and China's Alibaba Group, while Microsoft would buy a chunk of what remains of the company, the source said.

"In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo! Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo! an alternative that would involve a transaction with Yahoo! but not an acquisition of all of Yahoo! Microsoft is not proposing to make a new bid to acquire all of Yahoo! at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo! or discussions with shareholders of Yahoo! or Microsoft or with other third parties.

"There of course can be no assurance that any transaction will result from these discussions."

Today, Microsoft Corp. and One Laptop per Child (OLPC) announced an agreement that will make the Microsoft Windows operating system available on OLPC’s low-cost XO laptops for the world’s poorest children. Through this agreement, trials of the XO running Windows are planned to begin as soon as June in key emerging markets. Recognizing that the challenge of providing high-quality education for children in the developing world is too large to be solved by any single organization, Microsoft and OLPC are committed to working with governments and nongovernmental organizations to ensure the success of these pilot programs.

The availability of Windows, in addition to Linux, on the XO laptop will allow customers to have an expanded choice of operating environments that best fit their requirements. The intention is to create a version of the XO laptop that provides the ability to host both Windows and Linux operating systems, giving users the ability to run either on the XO laptop.

Carl Icahn launched a proxy battle to force Yahoo Inc (NasdaqGS:YHOO - News) to reopen buyout talks with Microsoft Corp (NasdaqGS:MSFT - News), the billionaire investor said in a letter to the Internet company on Thursday.

At Microsoft's CEO Summit in Redmond this morning, Bill Gates showed a prototype called TouchWall, which the company described as a vertical version of its Microsoft Surface tabletop computer. Gates gestured across the screen with his hands to browse digital files on the screen, using a companion software prototype that the company calls Plex.

Microsoft Corp. today announced that the Xbox 360 video game and entertainment system has sold over 10 million units in the U.S., making it the first current-generation gaming console to break the 10 million mark in the U.S. The U.S. install base contributes to global sales of over 19 million.

“This year will be the largest in the history of the video game industry, with Xbox 360 leading the charge in the U.S. and abroad,” said Don Mattrick, senior vice president of the Interactive Entertainment Business in the Entertainment and Devices Division at Microsoft. “History has shown us that the first company to reach 10 million in console sales wins the generation battle. We are uniquely positioned to set a new benchmark for the industry.”

This announcement comes on the heels of one of the biggest entertainment launches in history, “Grand Theft Auto IV,” on April 29, 2008. Gamers eager to experience “Grand Theft Auto IV” online helped boost Xbox LIVE global membership to over 12 million this month. Fueled by an unparalleled combination of access to friends and family, the best online gaming features, and the best entertainment content, the Xbox LIVE service has doubled in membership in only one year’s time.

“Reaching an installed base of 10 million consoles in the U.S. is a significant achievement and an essential milestone on the road to market leadership,” said Billy Pidgeon, research manager at IDC. “Perhaps more important is the Xbox 360 worldwide online base — 12 million Xbox LIVE gamers is the largest community in the connected console games sector, which represents the greatest growth opportunity in the console market and where Microsoft has been the leader for two generations.”

Xbox 360 leads with the industry’s highest software attach rate, more than any other console this generation, and is home to the best-selling games. With the launch of “Grand Theft Auto IV” in April, Xbox 360 is now the home to more than 16 platinum titles that have sold through 1 million units or more, including hits such as “Halo 3,” “Madden NFL 07” and “Madden NFL 08,” “Gears of War,” “Guitar Hero II” and “Guitar Hero III: Legends of Rock,” and “Call of Duty® 2,” Call of Duty 3” and “Call of Duty 4: Modern Warfare,” giving Xbox 360 two times more platinum-selling titles than the Wii and a 16:2 lead over the PlayStation 3 in game titles topping one million in sales. Games not only sell better on the Xbox 360, they play better, too: Xbox 360 has 91 titles with a Metacritic review score of 80 or higher, compared with just 22 titles for Wii and 50 titles for PlayStation 3.

The final frontier got a bit closer today as Microsoft Corp. officially launched the public beta of its WorldWide Telescope, which is now available at http://www.worldwidetelescope.org. WorldWide Telescope is a rich Web application that brings together imagery from the best ground- and space-based observatories across the world to allow people to easily explore the night sky through their computers. WorldWide Telescope has been eagerly anticipated by the astronomical and educational communities as a compelling astronomical resource for students and lifelong learners, and as a way to make science fun for children.

“The WorldWide Telescope is a powerful tool for science and education that makes it possible for everyone to explore the universe,” said Bill Gates, chairman of Microsoft. “By combining terabytes of incredible imagery and data with easy-to-use software for viewing and moving through all that information, the WorldWide Telescope opens the door to new ways to see and experience the wonders of space. Our hope is that it will inspire young people to explore astronomy and science, and help researchers in their quest to better understand the universe.”

The application itself is a blend of software and Web 2.0 services created with the Microsoft high-performance Visual Experience Engine, which allows seamless panning and zooming around the heavens with rich image environments. WorldWide Telescope stitches together terabytes of high-resolution images of celestial bodies and displays them in a way that relates to their actual position in the sky. People can freely browse through the solar system, galaxy and beyond, or take advantage of a growing number of guided tours of the sky hosted by astronomers and educators at major universities and planetariums.

Customers and Microsoft Corp. partners can now visit http://www.MultiplyYourPower.com to find out how to evaluate pre-release versions of Windows Essential Server Solutions for small and midsize companies: Windows Small Business Server 2008 and Windows Essential Business Server 2008. Microsoft also today announced pricing for both solutions.

By combining Microsoft technologies such as Windows Server 2008, Exchange Server 2007, SQL Server 2008 and other Microsoft products and services into all-in-one IT solutions, Windows Essential Server Solutions help businesses improve efficiency, increase productivity and drive growth. The solutions also are ideal for technology advisors serving the increasingly sophisticated IT needs of small and midsize customers.

“Small and midsize companies are looking for many of the same IT capabilities and benefits as those sought by large enterprises,” said Ray Boggs, vice president Small/Medium Business Research at IDC. “But the technology has to be delivered as part of simpler, integrated and more affordable solutions for organizations with minimal IT staffs and resources. And of course it helps if solutions are also tailored to meet the needs of technology consultants that often work with those small and midsize firms.”