Gates hands over XP to PC makers

Bill Gates will today formally hand over the finished code of Microsoft's new XP operating system to PC manufacturers in a ceremony at the company's headquarters in Redmond, Washington.

The hand-over of the so-called "gold code" means PC makers can start pre-installing the operating system on PCs for sale as early as the end of September.

XP is not slated for full consumer release until 25 October.

Microsoft today also confirmed the widely leaked pricing for XP. Windows XP Home Edition will cost $199 and the Professional Edition will cost $299. Both are available at a $100 discount as an upgrade.

At today's ceremony, disks of the operating systems will be presented in gold attache cases to the PC makers. They will then be whisked away by helicopter.

XP is the culmination of Microsoft's project to unify its home user and corporate operating systems under one brand. It has attracted criticism from many who accuse the company of continuing its monopolistic practices with the bundling of features.

Last week, Microsoft was forced to change parts of XP because Kodak complained about the bundling of digital photography features. Microsoft also beefed up security on Passport, the authentication engine that is also bundled with XP.

Microsoft is keen to make the operating system available as soon as possible, because of legal pressures. It is understood that the government might try and force the company to unbundle elements of the operating system as part of the behavioural remedies in the long-running anti-trust case.

Steve Barrie, chief analyst at Bloor Research, said: "Microsoft wants to try and make hay while the sun shines and get the operating system out there before the court forces them to change it. If it's already out there, Microsoft can then quite feasibly argue it would be too difficult for them to unbundle parts of the operating system."

Barrie added: "Microsoft won't be worried about rushing it out with a few bugs still in it - people pretty much expect that from Microsoft first editions."