Microsoft CEO Talks Economy, Unveils Bing

Microsoft CEO Steve Ballmer gave his take on the economy and how his company is responding to the downturn at the All Things Digital Conference.

"People generally agree this is a different recession," Ballmer said. "To think that things would be back in a year seems naive to me." He said Microsoft had a "gut check," and "flattened out the cost basis," which means cutting back on what he called the "future project investment stream." Microsoft still spends $9 billion in research and development. "We can still do a lot with $9 billion, but we'll do less new things," Ballmer said.

Ballmer also introduced Bing, Microsoft's latest attempt to take on Google and Yahoo in the search area. According to a poll by Penn, Schoen & Berland Associates, 54 percent of those survey preferred Google, followed by Yahoo at 22 percent and Microsoft at 8 percent.

"We flailed with Windows a lot of years before we got it right," Ballmer said, and added that it will be the same for search.

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