Microsoft on Thursday announced the pricing for its forthcoming Surface Pro tablet, starting at $899 for the entry-level 64-gigabyte version with an Intel processor and the full Windows 8 operating system.

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Initial sales of the Windows 8 operating system are said to be "well below" Microsoft's internal projections.

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Microsoft decided to oust Windows head Steve Sinofsky after former CEO Bill Gates reportedly expressed his support for current CEO Steve Ballmer.

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Parallels Desktop 8 for Mac has been updated with expanded support for Microsoft's newly released Windows 8 operating system.

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As Microsoft revealed that the company sold 4 million upgrades to its new Windows 8 operating system in its first four days, CEO Steve Ballmer dismissed Apple as a "low-volume player" in markets like PCs and smartphones.

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After Windows 8 debuted on Thursday, Microsoft's Steven Sinofsky offered his view of the computing landscape, and said PCs represent a great value when compared to "recreational tablets," alluding to Apple's new iPad mini.

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Sales of Windows PCs plunged ahead of the forthcoming release of Windows 8, but Microsoft saw strong pre-sales for its next-generation operating system ahead of its Oct. 26 launch.

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This week, Microsoft will step up its competition with Apple's iTunes with the launch of Xbox Music, a new service that offers unlimited streaming to Microsoft devices, including PCs running Windows 8.

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Microsoft continues to build toward the Oct. 26 launch of its new Windows 8 operating system, as it began taking preorders for the software on Friday, while PC makers also started accepting advance orders of their new Windows 8-powered machines.

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Microsoft has begun promoting its forthcoming Surface touchscreen tablets with an alternative, graffiti-style marketing campaign just a block away from an Apple Store in Chicago.

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Total Web usage of Apple's OS X operating system has exceeded Microsoft's Windows Vista, while for the first time, Windows 7 has topped Windows XP to become the world's largest operating system.

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For the first time in 25 years, Microsoft has updated its logo, with a tiled symbol that evokes the logo for its Windows operating system, as well as the new tile-driven Metro interface being pushed by the company.

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VMware on Thursday announced its new virtualization software Fusion 5, with 70 new features including a design that takes advantage of the latest features in Mountain Lion, and optimization for Microsoft's forthcoming Windows 8.

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Facing declining PC sales in the wake of Apple's iPad, Hewlett-Packard this week is expected to report a record quarterly loss of nearly $9 billion.

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Outside of Apple's Macs, sales in the global PC market have remained stagnant for several quarters, with many predicting a rebound after Microsoft ships Windows 8. But that's not going to stop the decline, an analyst with Barclays states.

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An executive at Blizzard, the developer of hit games like "World of Warcraft" and "Diablo III," has joined in to deride Microsoft's forthcoming Windows 8 operating system.

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The co-founder of hit game maker Valve believes that Microsoft's forthcoming Windows 8 operating system will spell disaster PC makers, some of which he believes will exit the market altogether.

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A total of 25 million tablets were shipped worldwide in the second quarter of 2012 as Apple's iPad increased its market share, accounting for 68 percent of all shipments.

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Apple's iPad is expected to continue dominating the tablet market with a share higher than 60 percent, while PC sales are projected to continue their downward trend, according to a new analysis.

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With OS X 10.8 Mountain Lion set to arrive this month, Apple's latest operating system will become available at least two months earlier than Microsoft's competing Windows 8.

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