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Video: Microsoft unveils new Windows smart phone

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2. Transcript of: Microsoft unveils new Windows smart phone

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   MATT LAUER, co-host: We are back now at 8:20 with Microsoft 's latest attempt to make a splash in the cell phone market. This morning the software giant is unveiling its brand-new Windows Phone 7. Here to do the honors, Microsoft CEO Steve Ballmer and senior product manager Greg Sullivan . Guys , good morning. Nice to see you both.

   Mr. STEVE BALLMER (CEO, Microsoft): Nice to see you.

   Mr. GREG SULLIVAN: Good morning.

   LAUER: Fair to say -- I hate to start on a bad note, but fair to say that the smartphone category, the cell phone category, has been your company's Achilles' heel over the last many years, true?

   Mr. BALLMER: Over the last year or two, I'd agree with that.

   LAUER: Yeah. Why?

   Mr. BALLMER: But we're...

   LAUER: Why has it been so hard to compete with the likes of Apple and BlackBerry ?

   Mr. BALLMER: Well, I don't know. But right now we're pushing forward, and that's the key is to push forward and to do things a little bit differently than the other guys do.

   LAUER: The company has a huge stake in what you're introducing today. On a personal note, so do you, Steve . There was a report issued in September, your bonus last year was not what it could have been, and they went right out and said one of the reasons was problems in the cell phone area. Have you fixed it?

   Mr. BALLMER: Oh, look at these beautiful new Windows phones.

   LAUER: You're looking at me going, 'You had to bring that up?'

   Mr. BALLMER: The Windows phone. It's that great? Yeah.

   LAUER: Right? Yeah? All right, talk to me about this. Why is it different?

   Mr. BALLMER: Well, what we've really do is tried to make it really about you. Wonderfully yours, as we say.

   LAUER: Intuitive?

   Mr. BALLMER: Intuitive, but your life. You go to the start screen, and right there on the screen, your friends, what's new with them, what's going on should be right there, wonderfully yours, always consistent all the way through the experience, whether you're in Xbox , whether you're in your own contacts or whether you're just checking in on a friend.

   LAUER: I want to mention that you have different companies making different versions of this phone that will be available. Why'd you go that route?

   Mr. BALLMER: Well, we think that if you really want to have the phone be individual, people have different needs. Some people will want keyboards, some people will want very thin and light, some people want more music, sound, different kinds of cameras.

   LAUER: One of the things key to this phone, the software, is the hub. You've shown me the start page . So in other words, if you go to the, you know, the phone or whatever, you hit a hub and this is -- kind of sets up everything in that category right in front of you.

   Mr. BALLMER: That's right . So if I want to see all my pictures, I can browse through what I've taken, what's been posted to me on Twitter and Facebook , whatever the case may be .

   LAUER: The -- it seems the litmus test these days, Steve and Greg , and you can chime in here, is is it sexy as the iPhone ? I mean, that's what people want to know. Is it as sexy? Is it going to create the buzz -- you smile every time I mention that word, but it is what people consider to be the standard.

   Mr. BALLMER: No, that's right. That's right . I mean, lot of good things out there. And yet, I think when people look at the Windows phone they'll say this is a different kind of phone. This phone is about me. This phone is delightful.

   LAUER: You have -- you continue to say that the PC -- not the phone, but the PC is still the most incredible smart device on the planet. But are we fast approaching a time where people do all of their computing -- all their computing needs can be met with one of these phones?

   Mr. BALLMER: Well, I just think people are going to have a different set of needs when they want to be productive, when they want to be on the go, when they want to sit back and watch the TODAY show . And we're going to have some kind of computer help us with all of those, phone, PC , TV .

   LAUER: You're buttering me up.

   Mr. BALLMER: Yes, I am.

   LAUER: I like that. You said recently in an interview that you are -- you're enthusiastic about the economy, that it's going to recover and you see good things, even hiring. Is Microsoft hiring people? Want to know where the jobs are. Is Microsoft hiring?

   Mr. BALLMER: We absolutely have openings.

   LAUER: Yeah?

   Mr. BALLMER: Absolutely. We got to build great products like this.

   LAUER: So in other words, if the success of this is what you hope it to be, you'll be hiring even more people?

   Mr. BALLMER: You got that right .

   LAUER: All right, that's good to know. Greg , anything you want to add to this? I don't want to make you a potted plant here. You're the guy making magic up here.

   Mr. SULLIVAN: Well, I was going to say when I demo this, I have a tough time getting the phones back from people. So, I mean, that's a good sign about the excitement.

   LAUER: It's a good sign. Microsoft unveiling its new addition into the smartphone category. Steve , Greg , nice to have you both here.

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