Microsoft Releases Windows 8 and Surface Tablet

Microsoft CEO Steve Ballmer claims to have "reimagined the whole PC industry" with Windows 8 launch.

Microsoft launched its new Windows 8 operating system and Surface tablet on Thursday. The new products are meant to gain a foothold in the market that competitors Apple and Google have been dominating.

[Steve Balmer, Microsoft Chief Executive]:
"We've re-imagined Windows and we've re-imagined the whole PC industry."

Microsoft unveiled the new Windows 8 at a launch event in New York for about one thousand media and PC industry partners.

Windows 8 can be used on devices made by various computer makers, as well as on the new Surface tablet.

[Michael Dell, Dell Inc. Founder and Chief Executive]:
"What we think we've done is hit a very good balance of bringing along the applications and user the experience that people know and love and need to sort of do what they do everyday, personally and professionally and then we've added in a seamless way these additional capabilities and additional hardware.”

Dell says the new Surface tablet is a best-of-both-worlds device.

[Michael Dell, Dell Inc. Founder and Chief Executive]:
"Getting the tablet and PC to work together has been a real nightmare, particularly if you are trying to secure your information. Now we have one product that basically does both. It's a tablet and a PC."

The Surface has a starting price of $499 (USD) for the 32 GB version. Windows 8 devices and the new Surface tablet go on sale at midnight on Thursday.

[Ross Rubin, Technology Analyst, Reticle Research ]:
"You'll be able to use the notebook with the apps that you've already had and used, but perhaps be able to take the tablet piece screen off  the keyboard and use it on your couch much as you would an iPad."

Microsoft has not said how many apps Windows 8 will have at the launch, but it is expected to be a fraction of the 275 thousand for the iPad.

Initial demand for Windows 8 appeared solid, but analysts caution that in the current tight economy, customers are wary of spending money on what they perceive may be unnecessary technology.