"Many things we do we are out on our own. Whether that's tablet computing or media center. Some areas we have great competitors. Google's quite narrow compared to what we do. But we're going to show people that the search that you have today is nothing compared to what it can be." Some wonder just how narrow they might be in the future. Do you see them as being your biggest threat? "It's hard to pick any one company. Google is hot. They're newly public. People are sort of saying, even when they do kind of a me too product, wow, that's cool. It makes the dynamic of competition there particularly stimulating for us and we thrive on it." Another competitor, Apple, seems to have a lock on the lion's share of the digital music business with iPods and iTunes. What are your plans to loosen that grip? "Well that's a market where Apple's done a good job. Certainly more and more mobile devices are going to have music capability. It's going to be integrated into the video game experience and the PC experience." But do you think Microsoft might get more involved with partners in hardware design in terms of music players? Do you need to do that? "We've been stepping that up and absolutely you'll see more of that."