Microsoft Vista: What you need to know

The software giant has a lot riding on the new products as it battles a resurgent Apple in the entertainment software business and Google (Charts) and Yahoo (Charts), which are dominant on the Internet.

Here's a look at how Microsoft's new products will affect the computer industry, and you.

Microsoft (Charts) released the new products through retailers in 70 countries Tuesday, backed by a $500 million marketing campaign with the corporate catch phrase "Wow." It's the first update to Windows since the 2001 release of Windows XP. (Full story.)

What will it set you back? Microsoft is offering four versions of Vista for consumers, starting at $199 ($100 if you're upgrading) to $399 for what it calls Windows Vista Ultimate (which is $259 for the upgrade). The cost for the business version of Vista made available in November varies.

After waiting this long, is it worth it?

In an interview with CNN, Microsoft Chairman Bill Gates said Vista would make the personal computer the "place where it all comes together" for multimedia applications like photos, music and videos. (Full story.)

And some experts say that Vista, which boasts a 3-D look and the ability to edit digital photos and videos, has the potential to take over consumers' living rooms.(Full story.)

But while Vista's gotten some good reviews, some independent experts wonder whether consumers should rush out and buy a copy now. (Full story.)

Others in the technology industry have gone even further, saying that for all the time and money, Microsoft's come up with a ho-hum product - and a big marketing splash that's essentially throwing good money after bad. (Full story.)

The Vista update also includes a dramatic facelift to its most popular software programs such as Microsoft Word. (Full story.)

So far sales of the new operating system, which Microsoft spent $6 billion developing, are going "very well," said company CEO Steve Ballmer. (Full story.)

And computer makers such as Dell (Charts), are hoping to benefit from the launch of Vista, announcing last Friday it would begin taking orders for its computers loaded with the new operating system. (Full story.)

But Vista has faced plenty of criticism leading up to its release.

Computer security researchers and hackers charged that they found a number of flaws in the new operating system (Full story).

Meanwhile Bill Gates himself has rejected claims that Vista has some similarities with Apple's (Charts) OS operating system for Macs.

And in Europe, a coalition of tech firms including IBM (Charts), Nokia (Charts) and Oracle (Charts) all spoke out last week, contending that Microsoft is attempting to thwart its competition through Vista. (Full story.)

And in case you were wondering, Wiley Publishing Inc., known for its "For Dummies" series of publications, released "Windows Vista For Dummies" in December of last year.

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