A splashy kickoff featuring acrobats and fire-eaters marked the official debut Thursday of the Windows XP operating system, seen by the ailing computer industry as a cure for its worst-ever slump.
But despite the glitz, it may be months before Microsoft Corp shareholders can tell whether the parking lot of the Best Buy in the Atlanta suburb of Duluth, Georgia, was half-empty or half-full on Thursday.
PHOTO: REUTERS
Ryan Studdard, one of the store's computer sales staff, said he didn't see much enthusiasm over the introduction of Microsoft's newest operating system, dubbed Windows XP. The biggest software maker claims that its new features will change the way people communicate, listen to music and exchange photos.
"I think that 95 out of 100 people don't care," Studdard said. "Most people use PCs for word processing or the Internet."
Microsoft and allies including Hewlett-Packard Co, Intel Corp and Best Buy Co have said they will spend US$1 billion on a marketing blitz they hope will reinvigorate the PC industry.
In a bid to introduce the new operating system with a bang, Redmond, Washington-based Microsoft has enlisted the help of celebrities such as game-show host Regis Philbin, New York Mayor Rudolph Giuliani and pop singer Sting.
Windows XP is "a milestone not only for Microsoft, it's also an industry milestone," chairman Bill Gates said at the launch at a Times Square hotel in a scene with music and flashbacks on a giant screen.
The hoopla, however, did not prompt consumers to flock to software retailers in droves.
The CompUSA Inc store in downtown San Francisco yesterday didn't seem any busier than on a typical Thursday. Few customers at the store bothered to check out two kiosks filled with the new software package, even though for US$99 they could get a Windows upgrade kit, free installation and a two-for-one airline-ticket coupon.
The store's Internet cafe, filled with iMac PCs that run on Apple Computer Inc's OS X, was more popular. Customers had to wait in line to surf the Web for free.
At Best Buy, Windows purchasers could choose from incentives including free PC memory, networking equipment, music CDs or digital music players. Best Buy spokesman Jim McManus said that nationwide the retailer yesterday sold more copies of Windows than it had expected. He declined to elaborate.
PC manufacturers have high hopes for the new product. Ted Waitt of Gateway Inc, Michael Dell of Dell Computer Corp and Carly Fiorina of Hewlett-Packard Co all made appearances to show their support for XP.
The 1995 release of Windows 95 fueled record PC sales and contributed to the Internet boom. A year ago Microsoft executives and PC makers said they hoped XP could fuel a second such boom.
The economic slowdown and threat of terrorism have dashed those hopes.
Microsoft CEO Steve Ballmer said he hopes the product will gain some "momentum" within the next six months.
When consumers buy an operating system, they typically buy it on a new PC rather than upgrading an old machine. Major PC makers are expecting a weak holiday season, with fourth-quarter revenue falling from last year, when sales failed to meet expectations.
Microsoft has said it will spend US$200 million on marketing Windows XP while Intel Corp, PC makers, retail stores and others are expected to spend another US$800 million.
On Thursday, Microsoft Chairman Bill Gates presided over a Webcast from Times Square to promote the product, playing a special Windows XP version of "Who Wants to Be a Millionaire?" with the TV show's host, Regis Philbin.
Traffic was light yesterday at the Best Buy in Duluth, which is about 1,368km south of Times Square. The store's manager, Joe Casella, said he hopes that business will pick up.
"XP is generating a lot of excitement," Casella said. "Most people are interested in its digital-photo, MP3 and digital-video features. Those are the main reasons people are looking to buy it."
At least that what the PC industry hopes.
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