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Microsoft's Ballmer Hints at More Hardware

In the run up to the release of Windows 8, Microsoft CEO Steve Ballmer hints that more hardware may be on the way.

October 25, 2012

On the eve of Microsoft's in New York later today, a few statements from the company's CEO, Steve Ballmer, have surfaced that offer significant insight into the software giant's strategy moving forward. In talking with the BBC, Ballmer gave the strongest indication yet that Microsoft may be in the process of morphing into a full-fledged hardware company.

It's true that Microsoft's successful Xbox gaming console counts as hardware. But when it came to the release of the Surface tablet, the company suggested it was intended to inspire other hardware makers to use its software rather than beat them at their own game. But in a somewhat tense exchange, during which the BBC interviewer repeatedly probed Ballmer for strategic details, he indicated that Microsoft's future will indeed involve even more hardware.

"We have committed ourselves on a path where we will do whatever is required from both a hardware and a software innovation perspective and the cloud innovation perspective in order to propel the kind of vision that we have," he said. "Is it fair to say we're going to do more hardware? Obviously we are. We did our first piece of non-Xbox hardware" with the Surface.

And while those comments are open to interpretation, Ballmer then acknowledged that "where we see important opportunities to set a new standard, yeah, we'll dive in."

Does that mean we'll see a Microsoft smartphone to go with the company's tablet in the near future? Ballmer wouldn't say. But rumors mentioning have been swirling around the tech industry for months. Ballmer has faced the question directly, but his careful avoidance of delivering a firm "no" regarding a possible Microsoft smartphone has only fueled further speculation that such a device might soon be in the offing.

The reception of Windows 8 later today, as well as the public's response to the Surface tablet, will likely play a major part in whether those rumors and speculation turn into a real device that is primed to compete.

For more, see and the slideshow below.