I kinda want to see a Steve Jobs made out of kernel panics and beach balls now. [Poorly Drawn Portraits via Fake Steve]

There's certainly always opportunities for improvement. There is a group of people with whom our market share is less. You take any country, including this one, and you say, how are we doing? The truth of the matter is, we do quite well. Even among college students, we do quite well. Do we have an opportunity for improvement? We do. Some of that is marketing some of that is phase of life.

It is important to remember that 96 times out of 100 worldwide, people choose a PC with Windows, that's a good thing. Even in the toughest market, which would be the high end of the consumer market here in the U.S., 83 times out of 100 people choose a Windows PC over a Mac.

Ballmer also remarked that Apple has gained a few "couple of tenths of a percent of market share," but when the audience chuckled, he was prompt to say correct them:

Every couple of tenths matter. They matter when we're increasing our Bing market share, too.

Ooooooh, you are good, Mr Ballmer, you are good. There were many other piercing questions about the iPhone, Android. Check them out at [Techflash]

Trade in Your DVDs, Plus a Couple Bucks, and Get the Blu-ray Versions

Warner set up a DVD to Blu-ray exchange program called, appropriately enough, DVD2Blu, as sort of a more-tempting version of its HD-DVD to Blu-ray version. The problem is, it's not actually that great of a deal; you're limited to Warner movies, obviously, but it also costs $8-10 per DVD, plus $5 shipping, for the exchange. You might actually be better off just hitting Best Buy or Walmart or whatever and looking for sales, since DVD2Blu could cost you 18 bucks plus the agony of waiting for your new HD copy of The Wedding Singer: Totally Awesome Edition to arrive. [Engadget]

Steve Ballmer Acknowledges Apple's Gains, Remains Cocky

Microsoft held a shareholder's meeting this morning, led by the always-dynamic Steve Ballmer, and an interesting question came up: Why does Microsoft have such a lousy reputation among certain demographics, like, say, upper-middle-class college kids? Ballmer admitted that Apple's been seeing some gains that, while small, are a clear sign that Microsoft has room for improvement, either in marketing or product positioning. It's a pretty clear-headed statement from Ballmer—after all, he notes, Microsoft still has an insane marketshare, even in the high-end consumer demo, so despite Apple's visibility, Microsoft doesn't exactly have cause for concern. That level-headedness is why this story's in Remainders: Where's the explosive, frothing-at-the-mouth, prone to Bidenesque gaffes Ballmer we all know and, um, know? [TechFlash]

Sanyo to Build Houses Powered by Solar Energy and Li-Ion Batteries

Sanyo, considered Japan's "greenest" electronics manufacturer (sort of like being the best-dressed homeless person), is about to start building solar-powered, lithium-ion-based homes in its native country. The houses are all equipped with LED lighting, solar-powered water heater, all that stuff. They'll be a little pricey, at around $355,000—an equivalent non-green house would cost $62,000 less, although the Sanyo houses come with a $30,000 government subsidy. It's in Remainders because it's Japan only, and because I don't understand enough Japanese to learn any more about it. [Crunchgear]

Sony Announces Vague "iTunes-Like" Store on PlayStation Network for Books, Movies, Music

Sony announced the tentatively named Sony Online Service today—it's described as an "iTunes-like" service on the PlayStation Network, offering movies, music, and books, all media for which Sony also sells accompanying hardware. It'll also allow users to upload their own video, and will probably have support for independent app development later on down the road. We don't really know much else, like, say, a launch date or pricing (or even a final name), so it winds up here, alone in the dark corner of Gizmodo we call Remainders. [AppleInsider via Engadget]

"I've learned not to respond to quotes by Steve Ballmer. Hopefully we won't repeat the same mistakes that Microsoft did 10 years ago that ultimately led to all these things that have been happening with them."

Me-ow! Hit the link for video of the full interview, which is pretty interesting throughout. And not just for the catty comments about Microsoft. [Gigaom]

Windows 7 Sales 234% Higher Than Vista

NPD declared sales for Windows 7 were 234% higher than the sales for Windows Vista in the same amount of time on the market, says Nick Wingfield at the WSJ's Seattle desk. Oddly, Windows PC sales were down, 6% lower than they were during the Vista launch weeks. The NPD analyst take: "I think it's mixed. We would have liked to see a stronger jump on the hardware side." The non-analyst take: People who had XP knew that switching to Vista would suck without a new machine; now, the opposite is true, with so many people keeping their old machines but trying any means necessary to rid them of Vista. Still, these are early days, and we already knew pre-orders were insane. I'm just curious to see if PC sales will pick up for the holidays. [WSJ - Image Source]

Battery Juice No Longer Just an Expression, Still Not as Tasty as Orange Juice

You know how the Air Force has been working on a secret water-based battery technology for 25 years, but couldn't get it to work because of water's damned evaporative property? OK, me neither, but this research, which bears the ironically simple name "metal-air," might become our next great battery technology. They won't be using water, though. Instead, they'll use a clear, viscous, electrically conductive and mercifully non-volatile substance called ionic liquid. This stuff isn't going to be powering your Zune until the Zune itself is pretty much an implant (or a smart tattoo), but if you're curious, you should check out the super over-my-head chemical explanation. [MIT Tech Review - Image Source]

Verizon Calls AT&T's Ad Lawsuit "Junk"

As if AT&T's stupid "Map For That" lawsuit wasn't embarrassing enough on its own, Verizon Wireless's Jeffrey Nelson got a chance to ridicule it when AdWeek called him for comment. "This is a junk lawsuit," he said. "It's surprising that rather than defend the ‘blue' hot spots on their 3G map, our competitor instead focuses on their white spaces." This isn't working out according to plan, is it, AT&T? Reminds me of the Trojan Rabbit scene in Python's Holy Grail. [AdWeek via AllThingsD]

Air Filter Uses Plants to Get Rid of Yer Weed Smoke

There's a new air filter that draws air through the leaves, roots and soil of a house plant in order to filter impurities from the room. Well, it was designed in 2007, but it's now a reality. Hey, are you thinking what I'm thinking? If you grow pot in the filter, when you smoke it, the plant itself that bestowed it upon you can filter the smoke, and maybe recapture some THC for bonus stickiness? Wait, what? Oh man, I'm freaking out. You're crazy. This is crazy. Seriously. Let's do it. [Inhabitots]

Watch it, share it, do what you like. And if you just want the short and sweet, here again are our five featured bits (shot and edited by Mike Short):

Steve Ballmer Exclusive Interview Series:
Part 1: Ballmer Talks Natal, Says Blu-ray Add-On for Xbox Coming
Part 2: Ballmer on the Smartphone Race: "It Doesn't Matter What the Critics Say"
Part 3: Ballmer on Zune: Sometimes You Get It Right The Third Time?
Part 4: Ballmer on Those Crazy Ballmer YouTube Videos
Part 5: Ballmer Optimistic About Win 7, But Says Vista Is "Very Popular"

On the other hand, Maybe Ballmer noticed and didn't care. In the spot he discusses hardware diversity and this sort of proves his point. After all, you can run Windows 7 on a Mac. It's an amusing gaffe, but beyond that, the clip is interesting because it touches on Windows 7, the image battle between Apple and Microsoft and the issue of CEO pay all inside five minutes. [Crunchgear]

But unlike Bill Gates, who seemed like he wanted to admit Vista sucked, Ballmer sticks to his guns, calling it "very popular." He says:

It's much discussed but much used. Hundreds of millions of people are using Windows Vista...[Vista] has improved between service packs, compatibility upgrades that application vendors have done. Actually, the market environment for Vista is not anything like it was when it launched.

He contends that (poor) PC sales are "far more a function of the economy, right now" than any product, and uses that to express his continued caution about being too bullish on the Windows 7 launch.

Try as I might—and you can probably tell I was trying pretty hard—I could not get Ballmer to say or even hint that Vista sucked. It's cool, though. To his point, although Windows 7 smokes it, Vista did get better. We are currently running Vista on a pair of totally stripped, brand-new Acer Timelines, and they're actually doing fine (knock on wood). That had certainly not been the case when I interviewed Bill.

Stay tuned, because tomorrow we plan to run the full uncut interview video for your journalistically voyeuristic pleasure. Video by Mike Short

Steve Ballmer Exclusive Interview Series:
Part 1: Ballmer Talks Natal, Says Blu-ray Add-On for Xbox Coming
Part 2: Ballmer on the Smartphone Race: "It Doesn't Matter What the Critics Say"
Part 3: Ballmer on Zune: Sometimes You Get It Right The Third Time?
Part 4: Ballmer on Those Crazy Ballmer YouTube Videos

Here's the full statement:

Steve was referring to Blu-ray accessories for the PC. As we have said in the past, we have no plans to introduce a Blu-ray drive for the Xbox 360. In fact, the future of home entertainment starts this fall when Xbox 360 becomes the first and only console to offer instant-on 1080p streaming HD movies. With a library of thousands of TV shows and movies to choose from, Xbox 360 owners can instantly watch the movies they want, when they want, in the highest form of high definition.

This more clearly worded denial probably should have come last night, when we first asked for comment, instead of the more open-ended one provided at the time. Whatever... easy come, easy go. However, the idea that Ballmer was referring to the PC—which already has Blu-ray drives—rather than simply saying something that wasn't true, that's a little more questionable.

One more time, for posterity, this is what Ballmer said in reply to a question about putting Blu-ray in Xbox:

Well I don't know if we need to put Blu-ray in there—you'll be able to get Blu-ray drives as accessories.

Steve Ballmer Exclusive Interview Series:
Part 1: Ballmer Talks Natal, Says Blu-ray Add-On for Xbox Coming
Part 2: Ballmer on the Smartphone Race: "It Doesn't Matter What the Critics Say"
Part 3: Ballmer on Zune: Sometimes You Get It Right The Third Time?
Part 4: Ballmer on Those Crazy Ballmer YouTube Videos

As you can see in the video, he's not going to stop being himself, just because Bill Gates is officially out of the picture and the public finally sees Ballmer as the big man up top.

I'm me. And sometimes I'm very ebullient, sometimes I'm less. I think the most important thing is that I need to convey my belief, my optimism, also my views of how we need to improve, to our folks. And I try to do the best job I can and I do it my own way.

Does that mean more YouTube excitement? If it does, you'll surely see it here.

Stay tuned for more exciting Ballmer moments (and facial expressions), and then the full uncut interview video on Friday.

Steve Ballmer Exclusive Interview Series:
Part 1: Ballmer Talks Natal, Says Blu-ray Add-On for Xbox Coming
Part 2: Ballmer on the Smartphone Race: "It Doesn't Matter What the Critics Say"
Part 3: Ballmer on Zune: Sometimes You Get It Right The Third Time?

And in the rare case you hadn't seen the video I'm referring to:

When I asked if he gave an order to make Zune better, he replied:

Sometimes you get it the first time you cook the soup, sometimes it takes till the second time you cook the soup...You get better every time.

Maybe it's not the same as saying the first Zunes sucked, but however you interpret that, it's the closest Ballmer comes to conceding that product improvement was needed, that it wasn't just revision for the sake of the sales cycle.

Stay tuned for more exciting Ballmer moments (and facial expressions) over the next day, and then the full uncut interview video on Friday. Video by Mike Short

Steve Ballmer Exclusive Interview Series:
Part 1: Ballmer Talks Natal, Says Blu-ray Add-On for Xbox Coming
Part 2: Ballmer on the Smartphone Race: "It Doesn't Matter What the Critics Say"

Jason's favorite Asian child, Kylie from the Windows commercials, just brought out Steve, and he bribed her with a pink laptop.

Also, Steve is a Windows 7 PC, effectively immediately.

We're still here, btw—Microsoft's just been walking through Windows 7 features you guys have seen a million years ago while I shoot tons of photos of Steve with awkward facial expressions.

New CBS streaming video integrated with Windows Media Center. No real details, but you don't need a TV tuner. So I guess that's CBS's answer to Hulu?

Amazon multi-touch Kindle app for Windows 7—full color photos, pinch zooming to enlarge text, looks awesome. Could be a much-needed killer app for Windows 7 tablets. Maybe.

Streaming to 16 different screens from one Windows 7 PC using Play-To feature is actually kind of impressive.

Oh my, so many kinds of PCs. So many.

Apparently, there are so many PCs, Steve needs somebody else to explain them all to him.

And, that's it!

As you can see in the video, Ballmer acknowledges that Windows Mobile 6.5 is receiving negative reviews, but I never get him to actually admit that the platform still needs work. He says, "reviews aside," he's happy with what Windows Phones (running 6.5) can do now.

And faced with competition of iPhone, BlackBerry and others, he contends it's currently "kind of a horse race." The only clear leader, market-share wise, is Nokia, and they're losing ground. When I said that Nokia was another developer currently lambasted by reviewers, Ballmer replied:

At the end of the day, it doesn't really matter what the critics say, it matters what the customers say.

Perhaps given the power of advertising (still mighty, even if it's on the decline), there may still be a way for a product to get positive sales despite negative reviews. But the internet has changed that landscape, and the lines between critic and customer blur more every day. We all share knowledge in order to make better choices. So who, in the end, is this customer, who is so different from the critic? Not anyone who reads Gizmodo, that's for sure.

Stay tuned for more exciting Ballmer moments (and facial expressions) over the next day, and then the full uncut interview video on Friday. Video by Mike Short

Steve Ballmer Exclusive Interview Series:
Part 1: Ballmer Talks Natal, Says Blu-ray Add-On for Xbox Coming
Part 2: Ballmer on the Smartphone Race: "It Doesn't Matter What the Critics Say"
Part 3: Ballmer on Zune: Sometimes You Get It Right The Third Time?

When I asked Ballmer about adding Blu-ray to the Xbox, he said:

Well I don't know if we need to put Blu-ray in there—you'll be able to get Blu-ray drives as accessories.

Though he says it with certitude, the timing of any kind of Blu-ray accessory is unclear. Could he have mispoken? Certainly. However, when I asked Xbox spokespeople about Ballmer's revelation, they responded:

Our immediate solution for Blu-ray-quality video on an Xbox 360 is coming this fall with Zune Video and 1080p instant-on HD streaming. As far as our future plans are concerned, we're not ready to comment.

Microsoft PR is good — we trust them to say no if they're not making one, and in this case, the best strategy is a "no comment". Which turns out to be a comment.

Of course, his Blu-ray comment may not mean that Microsoft is coming out with an external drive—he may have just been shooting down the idea that the Xbox 360 will ever have an internal Blu-ray drive, by saying that any Blu-ray the Xbox gets would have to be external. On the other hand he did actually say, "You'll be able to get Blu-ray drives as accessories."

As you can see in our back-and-forth, Ballmer plays his cards close to the chest, but in my sit-down interview with him, he shared a lot. Prior to the Blu-ray business, Ballmer and I talked about Natal, and the excitement that Matt and Mark experienced when they stepped into the chamber back at E3. When I asked him if Natal was Microsoft's attempt to do away with concept of game console generations (thereby prolonging the life of a given platform indefinitely), Ballmer smiled knowingly and said "We'll see."

Stay tuned for more exciting Ballmer moments (and facial expressions) over the next day, and then the full uncut interview video on Friday. Video by Mike Short

Steve Ballmer Exclusive Interview Series:
Part 1: Ballmer Talks Natal, Says Blu-ray Add-On for Xbox Coming
Part 2: Ballmer on the Smartphone Race: "It Doesn't Matter What the Critics Say"
Part 3: Ballmer on Zune: Sometimes You Get It Right The Third Time?

Let's face it, the Internet was designed for the PC. The Internet is not designed for the iPhone. That's why they've got 75,000 applications - they're all trying to make the Internet look decent on the iPhone.

Only trouble is that I don't know how those fart apps are making the Internet look decent. [AP via Business Insider]

AMD said they expect less of an increase in Q4 revenues due to "the big build we've seen of PCs in anticipation of the Win 7 launch." Read: most PC makers aren't going to be ordering too many components from AMD for a little while. Apparently that comment has led investors to think this is an industry-wide phenomenon, that PC makers have all the inventory they need and more.

Without knowing how widespread the effect is, let's assume there are a ton of PCs out there. In that case, what will likely happen is the manufacturers will just sit on their inventory longer, and component suppliers will receive fewer orders. Hopefully, though, they'll feel the need to turn around that inventory quickly, which would mean some awesome deals could be on the horizon. [All Things Digital]

Image via Jfaneves

"'The test feedback (on Windows 7) has been good, but the test feedback on Vista was good,' Ballmer, 53, said in an interview last week. ‘I am optimistic, but the proof will be in the pudding.'"

To recap, that's Steve "I'm going to fucking kill Google" Ballmer, the CEO of Microsoft. Admitting Windows 7 could blow up in their faces as badly as Vista.

To be fair, the chances of that happening are very slim. Windows 7 isn't the giant leap that Vista was from XP, so most stuff works about the same. It actually runs better than Vista on most machines. Everybody involved seems to have their shit together. PC makers are actually ready. There are no dumb, misleading stickers. Drivers, a huge problem last time, look mostly solid, with graphics dudes Nvidia (who was responsible for 30 percent of Vista crashes in 2007) and ATI getting drivers for Windows 7 out months ago. And, Windows 7 is just really good. (Plus, going to his point this is how most people approach betas nowadays.)

Now I'm just waiting for Steve Jobs to talk about how much he loves the Zune. [Bloomberg via ZDNet]