Microsoft's Windows 7 Beta and Windows Live out soon

He also announced new alliances with Dell, Facebook and Verizon Wireless.

In February, Dell will offer preloaded Windows Live Essentials (a free suite of applications for instant messaging, e-mail and photos that complement Windows Live on the Web) and Live Search on a majority of its new consumer and small-business PCs globally.

In the coming months, Facebook users can choose to share content they post on Facebook, including photos, directly into Windows Live.

Under a new five-year relationship that covers mobile search and advertising, Verizon Wireless subscribers in the U.S. can use Live Search to search for local business and shopping information; access maps and directions; and find ring tones, games, wallpaper and other online mobile products and services.

“I’m thrilled to announce the availability of the Windows 7 beta, which is on track to deliver simplicity and reliability,” Ballmer said.

“Windows 7 and Windows Live are part of an incredible pipeline of consumer technology that is making it easier than ever for people to communicate, share and get more done.”

The beta version of Windows 7, Microsoft’s next-generation PC operating system, can be downloaded by MSDN, TechBeta and TechNet customers.

Consumers who want to test-drive the beta will be able to download it today at www.microsoft.com/windows7

Windows Live, a suite of personal communications services and applications, makes it easy for people to communicate, share and keep their online lives in sync and in one place with one login.

At CES, Microsoft demonstrated new features and improvements in Windows 7.

The new Home Group feature makes it easier for consumers to connect multiple home PCs together to share printers and access files, music, photos and videos.

Device Stage has a single interface to manage devices and run common tasks.

New multitouch technology in Windows 7 will enable people with touch-screen monitors to use multiple fingers to interact with their PC screens.

The “Play-to” feature in Windows 7 allows easier streaming of music, video and photos to devices in a home network.

Windows Media Player and Windows Media Centre in Windows 7 have built-in support for more media formats so people can use their PC to play more media content and sync it to a broader range of devices. Microsoft’s president of the Entertainment & Devices Division, Robbie Bach, shared the stage at CES with Ballmer.

Despite a tough economy, Xbox 360 registered its biggest year ever, driven by record retail sales with 28 million consoles sold to date, an 84 percent jump in online consumer spending, and Xbox LIVE membership that has grown to 17 million active members.

“Not only is Xbox 360 one of the world’s leading next-generation gaming consoles, but with partners like Netflix, it is one of the world’s leading entertainment devices, period,” said Bach.

“With 28 million consoles sold worldwide, an active online community of 17 million members, and more than $1 billion spent on Xbox LIVE since the launch of the Xbox 360, it’s clear that consumer demand for these great entertainment experiences has never been higher. We’re only beginning to scratch the surface of what’s possible with Xbox,” he added.

Bach said consumer demand for connected TV is growing and announced the Mediaroom platform has reached nearly 2.5 million subscriber homes worldwide, an increase of more than 1.5 million new connections in the past year alone.

Microsoft Mediaroom enables broadband service providers to deliver new connected TV and entertainment experiences to consumers.

Bach also unveiled the feature Mediaroom Anytime that lets subscribers access previously aired shows directly from the Interactive Program Guide without any pre-planning or prior DVR recording.

This month, Microsoft and Netflix, an online movie rental service, will offer software that enables Windows Mobile customers to update and view their Netflix movie queue.

Changes will appear instantly on Netflix on Xbox LIVE, extending the existing service that launched in November.

He said this spring, Microsoft will introduce a new interactive entertainment genre with the premiere of the Xbox LIVE Primetime channel, which brings together the best of TV and gaming.

Xbox LIVE Primetime will debut with an online version of the popular TV show “1 vs. 100” that enables thousands of gamers to play together with real hosts and compete for real prizes.

In addition, Bach talked about the outpouring of creativity from the Xbox community since the announcement of Community Games in November, with over 100 new games available for anyone to play.

He highlighted an upcoming Xbox LIVE Community Game called “Kodu,” launching in the spring, designed to help anyone from age 7 to 70 create their own video games.