Microsoft Corp took on the future as it introduced its latest gadget alongside an upgrade for its Windows operating system, outlining the companys aim to compete at the high-end of the technology market.
The HoloLens is a computer platform which projects holograms of objects and allows users to physically interact with them using their hands and voice. The device is expected to be implemented in Microsofts Windows 10, which is projected to be release later this year.
The new version of the operating system, dubbed Windows Holographic, and the HoloLens are aimed at providing evidence that Microsoft can compete with Google and Facebook at the very top of the high-tech industry.
The company is also mixing up its business approach with the launch of Windows 10. The latest release of the popular operating system would be distributed for free. However, analysts have projected that Microsofts move to allow many businesses and consumers to upgrade without any cost could damage the companys full-year sales with an estimate of $500 million.
PC consumers using Windows 7 and 8.1 will be able to upgrade to Windows 10 for free within a year of release, the company said. The upgrade would also be available for users of its latest Windows phone operating system.
However, the free approach indicates that Windows could be generating revenue acting like a service rather than a one-time sale. Additionally, wider customer base could mean easier sales of applications and other devices intended for Windows 10.
“There is no fundamental shift to our business model that we are telegraphing today,” said Chief Executive Satya Nadella, shutting down speculations for an immediate shift.
After the not-so successful Windows 8, Microsoft is hoping to extend its reach outside the PC world and widely spread its operating systems among tablets, phones and other mobile devices.
Microsoft also announced a new form of “universal applications” that could be installed on any device powered by Windows 10. The move marks Windows push into the mobile world, where the companys presence is not very well established.
According to researcher IDC, Windows-powered mobile devices account for less than 15% of overall sales. The company also promised to frequently update and improve its new operating system and the devices that come along with it, in order to keep up with the trend set up by Apple and Google.
Microsoft Corp lost 1.01% on Wednesday and closed at $45.92 on NASDAQ, marking a one-year increase of 27.80%. The company is valued at $382.39 billion. The stock edged up 0.44% to $46.12 at 9:07 GMT.
According to CNN Money, the 34 analysts offering 12-month price forecasts for Microsoft have a median target of $51.50, with a high estimate of $58.00 and a low estimate of $39.00. The median estimate represents a 12.15% increase from the last close price.
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