While he will remain Microsoft's second biggest shareholder, Steve Ballmer has begun selling off a good chunk of his shares and intends to do more before the end of the year. This week alone he's shed over 49 million shares of common stock, netting him around $1.3 billion dollars. The remaining 26 million could go soon and net him just another half billion. It's the first time since 2003 Ballmer has cashed out his shares. That sell off brought Ballmer around $1.6 billion. Bill Gates remains the biggest shareholder at Microsoft, owning around 7% of the company. Ballmer still owns around 4% of the giant. Gates himself cashed out around 3 million shares recently, probably to finance the purchase of more mosquitoes. via CNET

Microsoft employees, who do you love? Is it this guy? Well you should, because your Christmas bonus this year is coming in the form of a brand new shiny Windows Phone 7. Last week at PDC, Microsoft gave all 1,000 or so in attendance an LG Optimus 7 to start testing and building applications on. This was exciting for those in attendance because it makes them one of the first in the United States to get their hands on a Windows Phone 7 device in any mass quantity. This week, however, all 89,000 employees of Microsoft will be getting a complementary, yet unannounced, Windows Phone 7 of their own. Given the diverse geography of Microsoft's employees hopefully they'll have their choice of handsets based on network providers. This should go a long way towards promoting their new platform internally. Up until now almost every Microsoft employee I've ever met in the last three years has sported an iPhone. Google made a similar move when they released the very first Android handset, the G1. via Network World

Today must be Steve Ballmer's favorite day. Today is all about developers, developers, developers. Today kicks off the Professional Developers Conference 2010 at the Microsoft campus in Redmond, Washington. Ballmer will kick off the event with Bob Muglia during the keynote at 9AM PST today. Those of you not lucky enough to be up there can watch it online from Microsoft's website. Most of PDC 2010 will center around Windows Phone 7 development and the Windows Azure cloud, but expect to see some discussion of Internet Explorer 9, if not the release of an updated beta. So the question is, developers, are you as excited as Steve? Ready to chant and watch a slightly overweight man sweat uncomfortably?

It's hard to imagine that one of Microsoft's most successful franchises of the last decade almost became one of Apple's. Back in 2000, when Bungie was working on development of the first Halo game, it was slated to be a big title on the new Apple platform. It was so big that Apple had the Bungie team demo a beta of the game on their shiny new G3 Macs. However, Microsoft announced they'd acquired the company a few months later and it took Apple by surprise. It also enraged Apple CEO Steve Jobs. So much so that Jobs called Microsoft CEO Steve Ballmer to give him a piece of his mind.

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If you couldn't get a chance to watch the Microsoft CES pre-show keynote last night, you didn't miss much. If you were actually at the event, I feel sorry for you, it must have been hard to stay awake.

After starting late due to power issues (which fried one of the Microsoft demo units on stage) the keynote got off to a rather boring start with Steve Ballmer, Microsoft CEO, giving various statistics about how well recently released products like Windows 7 and Bing are doing. For the first half hour, the audio stream for the webcast was so bad, it kept cutting out and then required constant volume adjustment. Note to Microsoft, hire a decent sound engineer next time.

If you'd like to watch the keynote for yourself, you can see the saved version on the Microsoft website.

It was all pretty much downhill from there. The much discussed "Courier" tablet that many in the tech press was excited they would announce never came, and there were no details about Windows Mobile 7... at all. Only "we'll have more about mobile at Mobile World Congress." So overall, the keynote failed to deliver much of anything that we didn't know or have not seen already. But, here is a breakdown of what was covered:

• Microsoft has three goals in 2010: screens everywhere (meaning more PC and other devices), cloud services and natural UI.
• Since it's launch, Microsoft has sold over 39 million Xbox 360s. No data was provided on how many of those are replacement units after the first one suffered from a RRoD (red ring of death) -- in addition, there are currently 500 million games for the console, generating retail spending of over $20 billion.
• Xbox Live membership is now at over 20 million people.
• Project Natal, the natural motion capture interface for the Xbox 360, will be available for the holiday season of 2010.
• One interesting bit of news, is that HP and Microsoft will be teaming up to make Bing the default search engine and MSN the default homepage on their newly sold systems. Although it would seem that the agreement is something like "don't change the Internet Explorer defaults to Google."
• In the world of car multimedia: Ford will be rolling out updates for the next version of their Sync platform that include HD radio tuners that feature iTunes tagging. Blue&Me has now been sold in 1 million FIAT cars and KIA announced their UVO system rolling out in late 2010. Both Blue&Me and UVO are based on the same Windows Automotive embedded technologies as Ford Sync.
• While Windows Mobile 6.5 came out last year, it has generally been received with tepid enthusiasm. Ballmer refused to talk about Windows Mobile 7 last night, which is seen as the last ditch effort to save the platform. We shouldn't have very long to wait for more information though, as MWC is February 15-18 and Ballmer promised to have more during that time.
• What Ballmer did focus a lot on was Windows 7, which he said (and I would agree) is "faster, leaner, less busy... simpler to complete common tasks" - while we learned most of this during the launch back in October, it's still interesting that there were 3,000 engineers, 50,000 partners, 8 million beta testers for Windows 7.
• According to Ballmer, NPD says PC sales jumped 50% at the Windows 7 launch, and Black Friday was up 64% over last year. Gardner also says that in 2010 there will be a 12% PC growth over 2008. While Microsoft believes that has a lot to do with Windows 7, and they may be partially right, it should probably also be considered that the economy in late 2009 wasn't quite as bad as the "OMG! PANIC!" economy of late 2008, and that consumer spending was stronger last year overall.

"The range of PCs with Windows 7 is virtually limitless ... it has broadest ecosystem of developers in the world ... over 4 million Windows applications, 800,000 of them unique to Windows 7 just since the beta was released"

After Ballmer came Ryan Asdourian, Senior Product Manager for Windows, who came out to highlight all the different devices that run Windows 7. Sort of a "hey Apple, look we have cool and sexy hardware too!" A couple of the ones I liked were the Dell Adamo XPS notebook, which isn't new, but it always great to look at.

Asdourian highlighted the fact that the notebook is thinner then a poker chip and also wakes up from sleep mode faster then you can open the lid. Another system I wouldn't mind getting my hands on was the HP Envy 15, which features a DirectX 11 video card with 1GB of memory. Not bad for a notebook. Watching Ballmer on stage with Asdourian was almost painful though.

Seeing poor Ryan get teased and attacked by his boss in a failed attempt at humor. It was uncomfortable to watch, and makes me wonder what it's would be like to have to deal with him on a regular basis. One of the things that I did see some significant benefit to was the new collaboration feature of Windows Live Skydrive and Office 2010. In it, files that are stored and shared out of Skydrive can be opened by multiple users, and changes merged back into one document. The example that Asdourian used was students working on a PowerPoint presentation, in that each student could be simotaniously working on the same file, without having to share one computer. I can see this being useful at work, where all of our students already have Skydrive accounts though Live@edu.

Next Microsoft turned it's keynote focus to uniting software with the cloud, which is an approach I tend to be a fan of. My view, and also that of Microsoft, seems to be that the best approach for software going forward is having locally installed applications that communicate back into the cloud to instantly receive data. This is in contrast to Google's approach to the cloud which tends to be "put everything there and use a web browser to get it" ... which works for some applications and users, but not all, especially when access to an Internet connection is slow or non-existent.

Microsoft also announced last night that their Mediaroom 2.0 software will be available for IPTV operators to start testing next month. Mediaroom is the world's most deployed IPTV platform, powering such operators as AT&T U-Verse. The new version will allow providers to offer on-demand TV service to Windows 7 based PCs using Windows Media Center as well as on the Xbox 360. They can also offer on-demand programming to any web-browser on the PC or Mac, as well as compatible smartphones in the near future. Mediaroom 2.0 will also add support for Silverlight and IIS Smooth Streaming. Again, if you'd like to watch the entire keynote, you can do so over on the Microsoft site, but I wouldn't suggest it.

As more information comes out of CES that is Microsoft related (or if I see something interesting that comes from someone else) you can be sure to read about it here later this week.