It begins.  Microsoft has officially released its first-ever iPhone app, titled Seadragon.  What is Seadragon?  Its a photo nav app that changes the way a user can view and navigate through photos.  Not out for more than 24 hours, and it is already broken.  From the iTunes description:

The ‘Browse Photosynth’ functionality broke right after we submitted the app to the AppStore. Hopefully we’ll get a new version with this fixed submitted to Apple in the next few days. Photosynth search and adding a user to view their Synths still works. Sorry!

Look, we love Apple here at GearCrave, but we’re certainly not Apple Fanboys.  We also love us some PC action.  We don’t, however, love anything Microsoft has done for mobile.  We have high hopes for Windows 7, but in the mean time– we want Microsoft to stay far, far away from the iPhone.  Readers, let us know if you feel otherwise and think this might just be a step in the right direction.  We’re here to be proven wrong! [seadragon via techflash]

Someone seems to be making cash off of the fact that Microsoft is shoving Windows Vista down people’s throats. Even though Microsoft thinks it’s outdated software, Dell found out that people want to have their laptops and PCs to run on Windows XP. And more to it, they’re even willing to pay a lot to downgrade. What started at a price of $20-$50 to get from Vista to XP now has reached a price tag of $150 and the poor popularity of Vista seems to be pretty much established.  Would you pay to downgrade? [alleyinsider]

If the current reports are true, and there is no reason to doubt them, Windows 7 should be ready for the public by mid-January next year. With the way development has picked up pace, first DVDs of Windows 7 Beta 1 should be available to attendees at Microsoft‘s Developers Conference in Chicago and Minneapolis from January 13th onwards. Though expected to be officially available in early 2010, Microsoft seems to be speeding up the development process and may release it as early as late 2009. [via Electronista & image by neo.wave]

Microsoft has revealed forty six new Zune Originals designs for the holiday season. The new designs include a Zodiac series featuring artwork of eastern and Western astrology. Zune users are also able to personalize their own Zune Originals using their own images. [Zune Originals via Zunerama]

Our pals over at Gizmodo discovered a few coupons for the Xbox 360 Elite and the Xbox Arcade packages at Dell.  The Elite package is priced at $300 even when you use the coupon code 5Z051006DSW7DJ, down from $399.  The Arcade package with Madden ’09 comes down to $179 with the coupon code GNZ5SVNKLJ8924.  Normally, the Arcade package comes gameless.  Thanks to Gizmodo for the tip! [dell via gizmodo]

The Microsoft Arc Mouse has had an interesting week.  It was leaked, abruptly taken down, but the blogosphere has kept the images and the story very much alive (and likely to the disdain of Microsoft).  Coming this summer, the Arc brings a new design and new functionality to the typical optical mouse.  This mouse can fold into itself to shrink in size as a mobile mouse, or fold out to be a full size mouse for your desktop.  It is suggested to be priced at $60 and will be available in both black or red.

Buy: $60

If there’s a truth to our culture, its that America loves an underdog. Its ironic, of course, that Microsoft is the underdog here. The Zune 2, in this case, gives that underdog one hell of a bark and a bite. This feature-rich, high-style personal media player gives the iPod Touch a run for the money- for just 80% of the price. What’s new about the Zune 2nd Gen?

• The 2nd Gen Zune is 27% smaller than the original 30GB Zune.
• A larger, 3.2 inch lcd screen.
• The Zune 2 now includes a wireless sync with your PC.
• The round button control on the old Zune is now a “squirqle”, a touch-sensitive pad that controls nagivation through your media.
• An updated, sexy OS with expanded functionality.

The Zune 2nd gen is also available in 4GB and 8GB versions, just like the iPod Nano, for $149 and $199 respectively. But the granddaddy 80GB version in black is available now for $249. Beat the holiday rush and grab yourself a Zune 2 now.

Buy for $249.