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Long-time Microsoft watcher Mary Jo Foley breaks down the latest company ventures, just announced at CES.

Gates talked up the increasingly important role of services in the consumer space. He said to expect both Microsoft and its partners to deliver broad services (like MSN 8 and Xbox Live), as well as more niche services, such as printing services, like the one Microsoft recently launched with Kinko's, or even more tailored hobbyist services. Gates described these kinds of services as "the infrastructure required to develop the kind of things promised three to four years ago."

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