Last fall’s launch of the new operating system was supposed to be a milestone to catapult Microsoft and its allies into the market for new kinds of computing devices–including tablets and convertible products–and help generally get consumers more interested in buying new PCs. Six months after the operating software’s debut, it isn’t yet a hit by the accounts of some PC executives and research firms.
One market-research firm, IDC, went so far as to say that Windows 8 did more than fail to revive the PC market–it actually turned off users with changes to basic elements of the widely used operating system.
In an interview with The Wall Street Journal last week, Windows co-head Tami Reller was more candid than other Microsoft executives in saying Windows 8 hasn’t come on like gangbusters, though she said the company is seeing steady if not steep sales progress. She said Microsoft has sold more than 100 million Windows 8 licenses.
Without offering many details yet, Ms. Reller outlined how Microsoft is working on changing software features, helping people overcome obstacles to learning the revamped software, altering the shopping experience for consumers, getting more of people’s favorite apps available for Windows 8 and making sure a wider array of Windows 8 computing devices will be on sale.
Ms. Reller said Windows 8 was built to be ready to “evolve” to changing demand. “We didn’t get everything we dreamed of done,” she said in a meeting at Microsoft’s San Francisco offices.
She said Microsoft executives will make two sets of relevant disclosures in coming weeks. They will focus on Windows Blue, which Ms. Reller confirmed is both the codename for a coming update to Windows 8–with additional features and improved services–as well as a name for a broader strategy shift to provide faster changes to its key software than the typical pattern of providing new version once every three years or so.
First up soon will be details about pricing, packaging and an official name. (The “Blue” name will give way to an official brand, just as Microsoft’s Web-search engine was dubbed “Kumo” internally before it was launched as Bing.) The updated software will be available later this year in time for the holiday season, Ms. Reller said.
Ms. Reller said a second Blue update is expected before late June explaining the technical vision, addressing user gripes about Windows 8, and outlining options for new Windows 8 devices. Microsoft previously has acknowledged it is working to make Windows 8 available to power the suddenly popular smaller tablets, in the mold of the 7-inch Google GOOG -0.38% Nexus.
Ms. Reller declined to discuss Microsoft’s plans for more homegrown computing devices in addition to two models of its Surface tablet-style computer introduced since October. The Wall Street Journal has reported Microsoft’s is working on a new lineup of devices including a 7-inch version of the Surface.
Ms. Reller said people shouldn’t expected the company to discuss its Surface roadmap in coming weeks, dousing expectations of some analysts who had expected the company might do so at a June conference for software developers.
Ms. Reller also said what Windows 8 users and retailers have said for many months–Windows 8 is a better experience on touchscreen computers–and vowed that Microsoft will put all its weight behind touchscreen devices. She said Microsoft is spreading the message to retailers that if they want help from Microsoft’s marketing and promotional muscle, they will need to offer more and more variety of touchscreen Windows 8 machines.
Ms. Reller said by the fall, and certainly by the holiday shopping season, Microsoft expects there will be a wider array of touchscreen Windows 8 PCs at many different screen sizes, types and prices. She said Microsoft’s marketing push behind the updated Windows 8 will rival the hundreds of millions of dollars the company spent on TV commercials and other promotions around the fall Windows 8 launch.
Still, Ms. Reller acknowledged Windows 8 device sales would have been better if Microsoft and its allies had gotten a better mix of touchscreen devices last year. “If we could have done a better job accomplishing that in the holiday launch or [the] selling season following, that certainly would have made a positive difference,” Ms. Reller said.
Since the November departure of Steven Sinofsky, who had led Windows 8 development at Microsoft, Ms. Reller has overseen the Windows division with Julie Larson-Green. In their power-sharing role, Ms. Reller is responsible for the business functions of Windows, while Larson oversees engineering and other technical aspects of Windows software and hardware.
It remains to be seen whether Ms. Reller will stick around long enough to see Windows 8 through its changes. Microsoft Chief Financial Officer Peter Klein recently said he plans to step down from his post and leave the company at the end of June, and Microsoft-watchers have speculated Ms. Reller’s professional experience seems to make her a good fit as his replacement.
Ms. Reller said, “I do love my current job,” but demurred when asked whether she might take the CFO post.
And a willingness to discuss Windows 8’s faults didn’t mean Ms. Reller was willing to concede to all the critics of Windows 8. She said she disagreed with IDC’s conclusions that Windows 8 was responsible for the first-quarter dropoff in PC shipments.
She said it is difficult for IDC and others to measure PC shipments at times of transition in the computing market. Ms. Reller showed a PowerPoint slide of weekly Windows 8 sales since its Oct launched that showed a slow trend of increasing sales.
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