Causing the heads to explode of anyone who was wishing for a less-confusing lineup of Windows 7 versions, Microsoft has confirmed that there will be six SKUs of its upcoming operating system. Apparently, though, the company is going to put most of its efforts (at least in marketing and retail placement) behind two SKUs: Windows 7 Home Premium and Windows 7 Professional. The former has all the expected trimmings, like multi-touch and media center capabilities, Aero User Interface tweaks and home network groups. The latter has those features plus mobility center, presentation mode and enhanced networking capabilities like remote desktop hosting. Below those two SKUs is Windows 7 Starter — a stripped-down version that’s limited to three installs — and Windows 7 Home Basic, which is only available in emerging markets. On the higher end, there’s Windows 7 Enterprise for volume licensees and the all-encompassing Windows 7 Ultimate. Choose wisely. [Engadget and ZDNet]

Microsoft CEO Steve Ballmer had some thoughts to share on the sour world economy with CNET and EMC.  “I think if you did a fair analysis of the last 25 years and said what’s has been the top source of productivity gain in the U.S. or world economy, it has been information technology,” explained Ballmer.  And while the economy is facing a stark peril, Ballmer feels that it is information technology that will right this ship.  While we might be a bit biased, ya know– since we’re a gadgets/tech publication, we can’t help but agree.  However, Ballmer had better be careful about what he says though, he might end up with egg on his face…  Zing!  Can you feel that!  Burn!  You got BURRRNED!  (before we embarrass ourselves anymore, you can learn more about Ballmer’s comments at Cnet)

No disrespect to Tampa’s finest, but running security at the Super Bowl can’t be left to the locals alone. Authorities all the way up to the federal level were involved in over a year of planning, but more pertinent to our discussions here, Microsoft lent some heavy-duty technology to the operations. The company’s multi-touch, multi-user Surface device displayed the entire region on a Virtual Earth map, which could be zoomed in to display 3D images of the city. In collaboration with the E•SPONDER technology partnership, Surface allowed for real-time tracking of events, incidents and resources, and could connect with remote devices and PCs as well. To see the excitement in Tampa Incident Commander Major Bennet’s eyes, check out the video. [via Ars Technica]

If you’re curious about the next version of Windows and would like to play around with it, now’s the time to start downloading. The Windows 7 Beta will be available until February 10, and downloads that start on that date will have two extra days to finish up. Keep in mind that the beta doesn’t have to be activated by the 10th, as product keys will remain available. In fact, if you can find an ISO of the beta circulating around the Internet, the official download window shouldn’t matter. One word of caution, though: The beta expires on August 1, so make sure you can still work and play on your existing setup when time runs out. [Windows Blog via CrunchGear]

The holiday season was not kind to Microsoft’s Zune. Sales of the the media player dropped by 54 percent, or $100 million, during the last quarter of 2008, compared to the same period in 2007. Adding insult to injury, Apple’s iPod saw a 3 percent sales growth during the last quarter. Consumers aren’t the only ones who are souring on the gadget; earlier this month, Financial Times wrote that Microsoft CEO Steve Ballmer is “all but ready to throw in the towel” on the Zune. He’s happy that the mobile media player market is shifting towards software — something the company can really grasp. [SEC via Wired]

Despite a slight revenue increase over the same Q2 period in 2007, the weak PC market is taking its toll on Microsoft, leading the company to lay off up to 5,000 employees, including 1,400 effective immediately. The cuts will affect R&D, marketing, sales, finance, legal, HR and IT and will play out over the next 18 months. Microsoft saw client revenue go down by 8 percent from the second quarter in 2007 to the same period last year  “as a result of PC market weakness and a continued shift to lower priced netbooks,” the earnings report says. On the bright side, Server and Tools revenue grew 15 percent, and the Entertainment and Devices division saw a 3 percent increase in revenue thanks to strong Xbox 360 holiday sales. CEO Steve Ballmer offered some words of confidence, saying the company “will emerge an even stronger industry leader than we are today.” [Earnings Report via I4U]

CNN is truly the master of superfluous reporting technology. In November, the news network gave us the “holographic interview,” and now we’ve got “The Moment,” a collection of reader-submitted photos mashed into a pseudo-3D space with Microsoft’s Photosynth technology. While the hologram served a strange yet practical purpose — the tent on the reporter’s side shielded her from the scene she was reporting on — this is more of an “ooh, ahh” diversion to comfort those who couldn’t make it to Washington. Still, it’s worth playing around with if you’ve got a few minutes to spare. [CNN]

(Editor’s Note: this is the worst video I’ve ever seen in my entire life.  Feel free to point and laugh)

If you consider yourself a singer, but can never manage to get a band together to play back-up for you- them Microsoft has the perfect piece of software for you. Microsoft Songsmith is a program that allows you to sing into your computer and then the program will build an accompaniment for you that works along with the rhythm and tonality of what you’ve sung.  While this technology is not necessarily new, it is new to both Microsoft and stand-alone software as a whole.  Just imagine– this software and autotune and you’ve got yourself a hit… [via arstechnica]

No matter how nicely the name rolls off your tongue, a ZunePhone is looking less like a reality. In fact, an article in the Financial Times suggests that Microsoft CEO Steve Balmer has practically given up on the Zune altogether. “In digital music… Mr Ballmer seemed all but ready to throw in the towel on the Zune mobile device, which has failed to gain ground on Apple’s iPod,” the article says. Balmer believes that the market is shifting towards “general purpose” devices such as the iPhone and iTouch, a statement that left the door open to a question about the Zune phone’s chances. “You should not anticipate that,” Balmer replied. MS wants to focus instead on making software for the mobile devices that are already successful. [Financial Times via Silicon Alley Insider]