Gates: The part of Microsoft I stay up to date the most on is probably the research group. I was over at the Cambridge lab a few weeks ago, over at the India lab as part of a trip I take this month, and that's really the sort of crown jewel in terms of always feeding neat new things into Microsoft. I'd say a cool example of that, that you'll see is kind of stunning, in a little over a year, is this (depth-sensing) camera thing... Not just for games, but for media consumption as a whole... If they connect it up to Windows PCs for interacting in terms of meetings, and collaboration, and communication, you put the camera in now it's a cool thing, and it's just an example where Microsoft research did the original stuff to show, with the depth information, something great could be done. Then both the Xbox guys and the Windows guys latched onto that and now even since they latched onto it the idea of how it can be used in the office is getting much more concrete, and is pretty exciting.

So Microsoft is a very innovative company, but obviously in a hyper-competitive field, which is what makes it such a great field.

CNET: I'm not sure I understood that last point. You're talking about cameras, you were talking about like the depth sensing cameras that are in Natal?
Gates: Yes, exactly, Natal. The software libraries and applications we're doing around Natal.

CNET: And we'll basically see that in more than gaming? We'll see it in other scenarios, too?
Gates: Well, I think the value is as great for if you're in the home, as you want to manage your movies, music, home system type stuff, it's very cool there. And I think there's incredible value as we use that in the office connected to a Windows PC. So Microsoft research and the product groups have a lot going on there, because you can use the cost reduction that will take place over the years to say, "Why shouldn't that be in most office environments?"