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Microsoft and Facebook strengthened their existing partnership Thursday with the announcement that Microsoft would be powering the social network’s Web search and sponsored links.

The announcement was made at Microsoft’s annual financial analysts meeting in Redmond. Sources indicate the search services will be integrated into Facebook without many changes to the overall site design.

Facebook will begin using an API from Microsoft some time in the fall. The move mirrors a similar deal between Google and MySpace made almost two years ago. The search giant paid $900 million for MySpace’s search box and ads.

Google’s deal extends across all Fox Interactive sites, which include Rottentomatoes.com, Gamespy.com, fox.com, americanidol.com, and others. In addition to search, Google also has rights to advertising on these sites.

The actual monetary value of Thursday’s Facebook deal was not disclosed, although Microsoft previously invested $240 million in the site last October. That deal made Microsoft the exclusive third-party provider for advertising on Facebook.

Shipments of Blu-ray Disc-based video recorders and players are increasing fast in Japan as the market rallies around the format after the end of its battle with the defeated HD DVD format. Shipments of recorders and players based on Blu-ray Disc hit 122,000 in June marking the first time that monthly shipments have broken into six-figures, according to data published on Tuesday by the Japan Electronics and Information Technology Industries Association (JEITA). The data is gathered from member companies, which include all the major consumer electronics manufacturers in Japan.
That figure is a healthy jump on the 82,000 units shipped in May and is likely due to anticipated demand for the devices going into July, when millions of Japanese workers receive a mid-year bonus, and August, when the Olympics are held in Beijing. Both events typically provide a boost to the consumer electronics sector.

View: The full story @ PCWorld

Facebook today released a new, cleaner and simpler design, along with the opportunity for users to preview and test the next-generation features and functionality. The company is inviting people to use the new design and try out the improved features by navigating back and forth between the new and current versions of the site. Access to the new design will be limited at first and gradually become available to all of Facebook’s more than 80 million users over the coming days. The company has been developing the new design since early this year. Over the past six months, more than 100,000 Facebook users offered constructive suggestions on the layout and features, many of which were included in the final version.
"We’ve made the changes rolling out today in order to highlight the most recent and relevant information that users value, give users even more control and ownership over their profiles and simplify the user experience," said Facebook founder and CEO Mark Zuckerberg. "Facebook’s new design makes it a lot easier for users to share information, and we encourage them to check it out."

Screenshot: New Facebook Design
View: Full Story on MarketWatch

Microsoft has started talks with Time Warner to buy its AOL subsidiary. AOL, formerly America Online, has emerged as an alternative for the software giant which, in results reported last week, recorded a net profit of £2.2bn in April-to-June but lost around £445m from its online advertising division. Silicon Valley insider Henry Blodget said a team from Time Warner/AOL met executives at Microsoft’s Seattle headquarters last Tuesday. "The two have talked many times before. But this is reportedly the closest the companies have come to a deal so far," said Blodget. "It sounds as though Microsoft is now working more diligently on a Plan B."

View: Full Story at the Scotsman

In June, Google Sites retained its lead in the U.S. core search market capturing 61.5 percent of the searches conducted, down slightly from 61.8 percent in May. Google was followed by Yahoo! Sites (20.9 percent, up from 20.6 percent in May), Microsoft Sites (9.2 percent, up from 8.5 percent in May), Ask Network (4.3 percent), and AOL LLC (4.1 percent).
Americans conducted 11.5 billion searches at the core search engines, representing a 7-percent increase versus May. Google Sites handled more than 7 billion core searches (up 6 percent from May), followed by Yahoo! Sites with 2.4 billion (up 9 percent), and Microsoft Sites with more than 1 billion (up 15 percent).

Link: More At ComScore.

Cellphone maker Motorola has sued former executive Michael Fenger for allegedly violating a non-compete agreement and threatening to reveal its trade secrets by taking a job with Apple iPhone division. Fenger accepted "millions of dollars in cash, restricted stock units, and stock options" in exchange for agreeing not to join a competitor for two years after leaving Motorola, where he oversaw mobile devices in Europe, the Middle East and Africa, the lawsuit said. However, contrary to the terms of his agreement, he took the iPhone job on March 31, less than a month after leaving Motorola.
Fenger, who now serves as vice president of global iPhone sales, also hired away two high-level Motorola employees who have access to Motorola’s trade secrets and customer relationships, the suit said. Unsurprisingly, an Apple spokeswoman said the company had no comment on the lawsuit, and Fenger could not be reached for comment. Motorola has demanded damages and repayment of stock options given to him in exchange for signing the non-compete agreement.

View: Full Story at Reuters

Microsoft has just released Power Pack 1 for their Windows Home Server software. Similar to a service pack for other versions of Windows, the Power Pack includes a number of bug fixes and improvements designed to enhance the overall experience the consumer has with the software. The highlighted changes listed are as follows:

• Support for home computers that are running Windows Vista x64 editions
• Backup of Home Server shared folders
• Improvements to remote access
• More efficient power consumption
• Improved performance

Additionally, Power Pack 1 also includes for the bug described in KB Article 946676 in which files could possibly become corrupted on a Windows Home Server computer that contains more than one hard drive.
If you have Windows Update set to "Automatic", Power Pack 1 will be downloaded automatically and installed for you. The setup file can also be manually downloaded from Microsoft’s website.

Link: Description of Windows Home Server Power Pack 1
Download: Download Windows Home Server Power Pack 1

According to Ars Technica, the servers responsible for activating new installs of Windows and Office are currently down due to an unspecified reason. The issue became apparent after several users attempted to activate Office 2003 with no avail, even as early as this morning, and a Microsoft representative confirmed that the servers were offline. Fortunately, this seems to be simply a case of prolonged downtime, rather than an actual activation error, as was this case in August of last year, when the Windows Genuine Advantage (WGA) software acidentally labelled legitimate installs as pirated versions. Users affected by this issue can still take advantage of the built-in 30-day grace period until the servers are brought back up.
Update: We’re very sorry, but apparently our original story was inaccurate in more ways than one. A new email from Microsoft has revealed that only the offline activations were affected by the outage, which is to say, people who attempted to activate over the phone or through customer support, and that online activations remained unaffected. More updates as they come.

Link: Story at ArsTechnica

Unlike DirectX 9, the DirectX 10 will not have a more than four year lifespan as Microsoft Corp. plans to introduce features of DirectX 11 application programming interface at the forthcoming XNA gamefest conference that takes place next week in Seattle, Washington. Moreover, ATI, graphics product group of AMD, and Nvidia Corp. also plan to discuss certain Direct3D 11 features at upcoming conferences.
Microsoft is going to host four sessions dedicated to Direct3D 11 application programming interface (API), according to agenda of XNA conference. The world’s largest software maker plans to introduce the Direct3D 11 graphics pipeline, unveil details about D3D 11 Tessellation capability, new type of shaders called Compute Shader as well as high level shader language 5.0.

View: The full story @ Xbit-Labs

Apple computers have enjoyed an excellent second quarter of 2008, with sales growing faster than any other manufacturer.
Gartner is reporting that Apple’s sales grew 38 per cent over the period and the company now has 8.5 per cent of the US market. HP consolidated its position as market leader with over 11 per cent sales growth, giving it a market share of 31.9 per cent. Overall the decaying economic situation has proved something of a boon to PC manufacturers.

View: The full story @ vnunet