Touch-screen use in next Windows

CARLSBAD, Calif. — Microsoft said Tuesday its next operating system will be made for touch-screen applications, an alternative to the computer mouse.

Microsoft Chief Executive Steve Ballmer unveiled the iPhone-like touch-screen feature at The Wall Street Journal's "D: All Things Digital" conference, calling it "just the smallest snippet" of the Windows 7 operating system slated for release in late 2009.

A Microsoft employee showed possible applications such as enlarging and shrinking photos and navigating a map of San Diego by stroking the screen.

Microsoft Chairman Bill Gates framed the new feature as an evolution away from the mouse.

"Today almost all the interaction is keyboard-mouse," Gates said. "Over years to come, the role of speech, vision, ink — all of those — will be huge."

Gates and Ballmer defended the latest operating system, Vista, while acknowledging missteps.

Gates said he has never been 100 percent satisfied with any Microsoft product, and that the company prides itself on fixing shortcomings in later versions.

"Vista has given more opportunity to exercise our culture than some products," he deadpanned.

Meanwhile, Ballmer said Microsoft remained in discussions with Yahoo after Microsoft's $47.5 billion bid for the Internet company was spurned.

He said Microsoft wasn't planning to buy Yahoo but offered only the barest details of what he had in mind.

"We are not rebidding for the company. We reserve the right to do so. That's not on the docket," he said.

Microsoft said May 18 that it had revived talks with Yahoo, without providing specifics. Ballmer declined to say much more.

"All I'll say is we're in ongoing discussions with them around a partnership."

When asked for his thoughts, Gates said, "I've been supportive of everything Steve has done. ... Totally supportive."

Microsoft has divulged little about its Widows 7 operating system, a contrast to the much-hyped release of Vista.

Chris Flores, a director on Microsoft's Windows client communications team, said in a posting on a company blog Tuesday that the more circumspect tack was deliberate and intended to avoid announcing plans that may change.