Tonight at 6:30 PM PST, Bill Gates, chairman of Microsoft, took the stage at CES 2007 to announce what is coming this year for his company. After bombing a few poorly thought out jokes, he recapped the intensive growth of the computer and technology industry before moving on to Vista, speaking about the huge steps it takes forward, and the effort and development that has been put into it.

Christian Hutchenson then took the stage to demonstrate Vista, and he put on a strong display of the new features, finally stealing catching up on Apple’s developments from the last 6 years. He touched on the new searching, the new automatic backup system, Windows Media Center, the new photo tools, and even the new features of Windows Ultimate. Everything featured fancy new graphics, and he made it all the way through the demo without encountering a single bug or blue screen of death.

Gates then spoke more about the hardware and software integration, playing a flashy video showing off some of the better looking PCs that are going to be running Vista. He then introduced the brand new Windows Home Server, which was censored from the live broadcast by Microsoft with the following message:

In respect to the Intellectual Property being demonstrated on-stage, we are temporarily suspending the audio and video portion of this broadcast. Normal programming will begin shortly. Thank you for your patience.

The feed quickly returned, and we caught a quick glimpse of a nice black HP server looking thing, which looked like a bunch of hard drives stacked on top of each-other with some nice blue lighting. Gates said the Windows Home Server is meant for storing all your data in the server to be accessed at any time, including compatibility with the Zune, Xbox, and even remote compatibility. The first hardware provider has been HP, but more brands are coming.

Robbie Bach took the stage and spoke to us about connected entertainment between gaming, music, TV, and movies. He then spoke about Zune, and how it is already the #2 MP3 player, suggesting they will take the leading spot (currently held by the iPod) in the coming years. He then spoke about how all the new media is becoming available on the different cell phones with Windows Mobile.

The Windows PC is still the most popular gaming platform. It is popular for casual as well as hardcore gamers. Bach showed another video about the broad scope of games available to play on Windows. Xbox 360 has been another huge hit, and there have been 10.4 million consoles sold, many expanding the overall gaming market. He mentioned many hit games becoming available including Halo 3 and Gears of War, as well as a myriad of upcoming games this year. Xbox live now has over 5 million members, and he announced that the Live experience (ie Xbox Live) will be compatible with Windows Vista this summer.

Hi-Definition is quickly becoming huge. You can buy an HD DVD player for the Xbox 360, which is in very high demand. Xbox live can also now send HD content over the net to play on your Xbox, and many movies and TV shows are already available. IP TV is becoming a reality, even for the Xbox 360. It features incredible speed, recording, and revolutionarily easy browsing, coming for the holidays of 2007.

Bill Gates then ascended and talked about Microsoft software taking over assisting your life 24 hours a day. Many people spend 2.5 hours a day in their car, so Microsoft is introducing car integration. Mark Fields, president of Ford Motors, came up and talked about a new, integrated, voice-commanded communication and entertainment system. It will be available for Ford only, and will supposedly be compatible with all electronic devices, even flash and Zip drives. With bluetooth phone integration, drivers can text message, call, and receive calls. They can even create their own personalized playlists with simple voice commands. You never need to worry about car compatibility with your phone because it automatically downloads and installs updates. Sync will be available on a dozen Ford cars later this year.

Gates then began to talk about new “connected experiences.” He explained several ridiculous new ideas that will soon be possible, such as signing for packages arriving at your home while at a bus stop, with a huge LCD display that will not only tell you the time of the next bus, but will also give you free coupons to your nearby favorite restaurant (I kid you not). He then went on to his kitchen, where he used the projection-touch-screen counter to find out that he put flour on it and to tell you how to make pie out of it. He then moved on to the bedroom, with a wall made out of LCD panels, where he set it as an aquarium with his wireless mobile PC, just before playing his favorite racing game on his 15’ (that’s 15 foot) screen.

If you want to check out the keynote, it will soon be available here.

Deep Thought’s take: The things listed in the above paragraph are so far off, they are not even worth uttering till the quantum 1024 bit processors are in the brains of the newborns. But wherever we are headed, Microsoft is going to be a part of it for a long time to come. Tonight they announced where they are heading in 2007, from the much-anticipated Windows Vista, packed with tons of new features, through all the new gaming and entertainment innovations, and even to Ford’s involvement in Microsoft’s car integration.

But stay tuned, there is a lot more coming! Tuesday, Steve Jobs is giving the MacWorld San Francisco 2007 keynote, with all of Apple’s new excitement for the new year as well. And at the end of the month, Microsoft is finally releasing Windows Vista to the home market! Catch it first right here on Deep Thought!