The world's largest software company, which powers more than 90 per cent of personal computers, has received good reviews for the new operating system, which it hopes will grab back the impetus in new technology from rivals Apple and Google.

"It's the first really significant release of Windows in a decade," analyst Brendan Barnicle of Pacific Crest Securities said. "Given the missteps around Vista, people really questioned Microsoft's relevancy in the technology space. So this is a critical first step for Microsoft regaining that credibility."

The new system - which is faster, less-cluttered and has new touch-screen features - comes almost three years after the launch of Vista, whose complexity frustrated many home users and turned off business customers.

The success of Windows - which accounts for more than half of Microsoft's profit - is crucial for chief executive Steve Ballmer to revive the company's image as the world's most important software firm. "There's not much that gets me more fired up than the chance to start selling and delivering," Mr Ballmer told a packed audience at the Windows 7 launch in New York. "You will be unbelievably impressed." Mr Ballmer and other executives demonstrated a range of new devices showing off Windows 7, from ultra-slim laptops to large touch-screen computers, highlighting a new Kindle book-reading application from Amazon.com and live-streaming CBS television shows.

Windows 7 sales will not immediately affect the bottom line of Microsoft, which is expected to post a lower quarterly profit today.

The company's shares were down half a per cent in afternoon trading at $26.43 in the US.

Microsoft is charging $199.99 for the Home Premium version of Windows 7, or $119.99 for users seeking to upgrade from older versions of the operating system - well below prices for Vista.

For the first time, shoppers will be able to buy PCs loaded with the software direct from a branded Microsoft store, with the first of a planned chain set to open in Scottsdale, Arizona. The US holiday season will soon reveal whether consumer PC sales get a kick from Windows 7, but success with corporations - the key to Microsoft's financial power - will not be clear until next year, analysts say.

Early indications are companies are getting ready to switch to Windows 7. "People like it," said Michael Capone, chief information officer for payroll services firm Automatic Data Processing, pointing out its quick start-up and good user interface. - (Reuters)

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