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Microsoft will offer PCs and software in its upcoming retail store chain. The retail stores will also feature Windows Mobile related products.

Microsoft Kumo is the latest Internet search engine that is currently undergoing tests. The software giant hopes it will compete with Google and Yahoo.

Microsoft sent letters to some 1,400 former employees asking them to return overpayments in their severance pay. The software giant is up against former workers who refuse to return the money.

Microsoft stores will open in the retail industry to offer PC brand computers, software, and Windows Mobile related products. The company has appointed David Porter as Corporate Vice President of Retail Stores.

A group of Microsoft pirates were sentenced to six and a half years in prison after selling illegal counterfeit copies of Windows software. The group made over $2 billion in counterfeit sales on Windows XP, Server, Vista, and other products.

Sales for the Microsoft Zune MP3 player tumbled by 54 percent during the last quarter while the Apple iPod grew more than 3 percent in market share. The battle of the multimedia players might have met its final match.

Microsoft announced it will slash up to 5,000 jobs and will make other cost management initiatives. The software giants unveiled a huge loss following its fiscal second quarter earnings report.

Microsoft is set to unveil three new mobile phone services at the Mobile World Congress trade show next month. The cell phone services are called SkyBox, SkyLine and SkyMarket which are likely to be named under Windows Live.

The Chinese government has convicted a ring of Microsoft pirate software leaders to six and a half years in prison. The counterfeiters made $2 billion selling fake software.

The Microsoft Zune MP3 players failed to acknowledge the leap year for 2009. The mobile gadget mistakenly thought there were 366 days in 2008.

Microsoft has been the target for rumors and recent gossip as reports suggest it will cut more than 15,000 jobs by January 15. Our sources tell us that the job cuts are with contractors and vendors.

Microsoft plans to offer a pay-as-you-go computer service on hardware and usage. The company recently patented the computer model hoping to work with manufactures.

Microsoft is planning to cut jobs next month, according to inside sources who work for the software giant. There is definitely a shake up going on at the company.

Microsoft is investigating a new vulnerability found in its SQL Server. Internet hackers have published code on the Internet that could allow remote code execution.

Microsoft confirms that the new full release of Internet Explorer 8 will be ready in early 2009. The software giant has already released a beta to test the new features in IE8.

Microsoft signed agreements with EMI Music, Sony BMG Music Entertainment, Universal Music Group and Warner Music Group to offer a new Zune download subscription. Customers of the portable music player will be able to keep 10 free song tracks per month.

Microsoft plans to offer a free antivirus solution for Windows and Vista called Morro. The company is ending its OneCare product in 2009.

Microsoft Live Labs has announced Seagradon Mobile for the Apple iPhone. The new mobile application lets users browse through an entire collection of photos from a single screen.

Microsoft Windows Live will soon become a social networking hub. The company plans to overhaul its Live software to compete with other social network giants such as MySpace and Facebook. The new version will be available in the coming weeks.

Microsoft on Tuesday released eight patches covering 28 vulnerabilities. The network security vulnerabilities that were patched include Internet Explorer, SharePoint, Office, Windows Media Player and Vista OS. Six of those patches were grouped as critical.

Microsoft CEO Steve Ballmer wants a deal with Yahoo as a search ad union. Ballmer stated that a deal between the two business technology companies would be beneficial. Analysts say that Yahoo still encourages Microsoft to treat any deal as a takeover bid.

Microsoft is going after software pirates that are selling counterfeit versions of Windows XP. The software giant has filed 63 lawsuits in 12 countries. Microsoft has also set up a new Web site for Windows customers to report counterfeit software.

Microsoft will be releasing service pack 2 for Windows Vista in 2009. The new update will let users record data to Blu-ray discs and includes a new Bluetooth 2.1 Feature Pack. The company said the new update will improve Wi-Fi setup and has made changes to the Vista network configuration tool.

Microsoft confirmed that its Live Search Cashback program was offline for several hours on Friday. Particpants in the Live Search program are expected to receive 40 percent cashback rewards. Only 3 percent was reported as purchased items.

The Security Response Center at Microsoft is warning of a worm that's attacking Windows and networks. The exploit was already patched in the latest Windows update. The worm malware has been reported by several hundred home users already.

Microsoft researchers conducted a Web search study to learn that people face risk of health anxiety. The term of this illness is called cyberchondria. People who feel ill and search for content for a diagnosis could mistake a headache for a brain tumor

Microsoft CEO Steve Ballmer was ordered by a judge to testify in the Windows Vista Capable suit. Ballmer will face tough questions about a phone call with Intel in January 2006. Microsoft is accused of helping Intel sell hardware that was obsolete.

Microsoft announced a new Zune music subscription which allows owners of its portable MP3 player to keep free songs. The Microsoft MP3 player currently offers millions of tracks. The free music plan comes with a new monthly rate for Zune customers.

Microsoft has announced it will replace its Windows security and PC management service with free anti-virus software. Microsoft Windows OneCare will be replaced by the new anti-virus protections in July 2009. The software giant hopes to protect a greater number of consumers with the solution product solutions.

Microsoft is releasing a new update to Windows Live which will include new social networking features. The company plans to merge its Live Messenger, Hotmail, Spaces, and its blog network into one network. The new update will be released this month.