Microsoft has agreed to comply with the European Commission's 2004 Antitrust ruling, slashing software license royalties so developers can hook into server technologies.

Microsoft has announced it is lowering the price of its Xbox 360 gaming console in Japan by 13 percent.

BusinessWeek is reporting that Universal Music is trying to get other major labels on board a new low-cost digital music subscription service which would take on iTunes.

To promote the Xbox 360 during the end-of-year holidays, Microsoft is bundling Forza Motorsport 2 and Marvel Ultimate Alliance with Xbox 360 and Xbox 360 Elite systems.

Halo developer Bungie Studios is going to break away from Microsoft, but the Redmond company will retain a stake - and, of course, the Halo franchise.

Microsoft has released a new version of Internet Explorer 7 which can install without Windows Genuine Advantage validation.

Adobe looks to be going up against Google and Microsoft with online applications by buying the makers of the online world processor Buzzword.

Microsoft general counsel Brad Smith told the Senate Judiciary Committee that the proposed merger of Google and DoubleClick poses an "imminent risk" of monopoly abuse.

Microsoft has retooled Windows Live Search to deliver more relevant results, integrate video and other media, and - you guessed it - better compete with Google.

Turns out the Halo 3 Limited Edition packaging can frag Halo 3 discs before they ever get into an Xbox 360, so Microsoft will replace them for free through December 31.

Microsoft is clarifying how they issue revisions to Windows Update: they will do it automatically, even when users don't want software installed automatically.

Microsoft has shipped version 1.0 of its Flash competitor Silverlight, and is partnering with Novell to develop Linux support.

Microsoft's Office Open XML document format didn't get fast-tracked as an international standard, but the company still believes the format will gain widespread acceptance.

Microsoft is offering a "precautionary and voluntary" retrofit to its Xbox 360 Wireless Racing Wheel because the units may overheat and start emitting smoke.

Microsoft's new SideWinder gaming mouse sports its own LCD, adjustable weight try, switchable DPI settings, and programmable macros.

In another EA-related executive move, Microsoft tapped Electronic Arts veteran John Shappert to head up Microsoft's Live software and services.

Responding to pressure from Sony and the Nintendo Wii, Microsoft is lowering the price of Xbox 360 systems by $50 effective August 8, 2007.

Microsoft's HD Photo image format has been proposed as the basis for JPEG XR, an international open image standard designed for the next generation of digital cameras.

Microsoft CEO Steve Ballmer says that a total more than 1 billion machines worldwide will be running Windows within the next year.

Microsoft has lowered the price on its Xbox HD DVD Player from $199 to $179 - and will include five free movies with players purchased between August 1 and September 30.

Microsoft has released financial numbers for its fiscal year ended on June 30, 2007: surprise, the company pulled in more than $50 billion.

Microsoft has announced three new controllers for its Xbox 360 - and a themed 20 GB Halo 3 edition for folks looking to devote their lives to Master Chief.

For folks inspired by the Transformers movie - or looking to take over the world - Microsoft has updated its robotics platform to support Windows CE and Windows Mobile 6.

High failure rates amongst Xbox 360 video game consoles has led Microsoft to extend its warranty on the systems to three years.

Microsoft says it plans to launch its Xbox 360 Elite gaming console in Japan October 11.

Amazon and Microsoft are partnering to being 1,000 independent film titles to Amazon's CustomFlix DVD on Demand service in HD DVD format.

Microsoft is launching a test program to sell AMD-powered personal computers in India, marking the company's first venture in PC sales.

Microsoft has announced beta versions of Windows Live Folders and Windows Live Photos, enabling users to store and back up documents and publish their photos.

Microsoft looked like it might change its tune, but no: the company will not be changing its licensing to permit use of Vista Home editions under virtualization.

Microsoft has filed suit against haptics developer Immersion, claiming it's due money from the company's deal with Sony to bring rumble to the PS3.

Yahoo co-founder Jerry Yang has been named Chief Executive Office of Yahoo, with former CEO Terry Semel taking the role of non-executive chairman of Yahoo's board.

The U.S. Supreme Court has overturned a decision in favor of AT&T which held Microsoft liable for patent infringement on copies of Windows sold overseas.

Microsoft is sticking to its plans to stop selling Windows XP to OEMs in January 2008, despite continuing issues with Windows Vista.

Microsoft is facing a lawsuit over stickers which proclaimed PCs would be "Vista Capable" when they can only handle the most basic version of the operating system.