First-gen Origamis 'not iPod killer', admits Microsoft

The hype around Microsoft's mysterious Origami gadget has begun to unfold.

The device, which Redmond originally envisaged as an ultra-mobile PC - with all-day battery life, yet small enough to fit in a pocket and much cheaper than a laptop - has not lived up its original brief.

The first generation of devices, being announced on Thursday, are bigger, pricier and more power hungry than the software maker had hoped.

Microsoft acknowledges that instead of a mass-market hit riding a wave of pre-launch hype, these devices are likely to appeal only to the most hard-core gadget fans.

Mika Krammer, a Windows marketing director for Microsoft's mobile platforms, said: "This is definitely our first step in looking at the area of ultra-mobile PCs."

Over the last year, several PC makers have been readying mini-tablets under the Origami code-name. These mini-tablets are capable of running Windows XP along with a "Windows Touch Pack" that allows the devices to be more easily controlled using fingertip input. Weighing in at roughly two pounds, packing a 7-inch screen and costing around $800, Microsoft expects that "gadget geeks" will be most of the early buyers.

Krammer said: "To really hit the mass market... in the hundreds of thousands and the millions of customers, we have to improve." The devices that begin shipping in April are likely to be more of a niche product, he said.

That's a far cry from the "dream" machines some envisioned when Gates first described his ultra-mobile concept last April.

In some ways, Microsoft has been the victim of its own success and some wild speculation. Rumours circulated that the company might have a portable Xbox or iPod killer in the works. Although Microsoft had hoped a teaser site would generate interest ahead of the launch, it had no idea it would create the buzz it did.

Krammer said: "We had anticipated some interest in what we were doing but this has received a lot more interest than we expected."

The initial devices run the Tablet PC edition of Windows XP, along with the "Touch Pack", which includes new software for playing back media, as well as a "program launcher" that makes it easier to find and run programs stored on the device. New settings make scroll bars and icons bigger and more easily navigated by a fingertip. Text can also be input using two thumbs via an on-screen keyboard. The software includes the popular puzzle game, Sudoku.

During a joint presentation with Intel at the CeBit trade show in Germany, Microsoft will show its software running on a Samsung device. Other Intel-based products are expected from Taiwan's Asus and China's Founder, while some companies, including Tablet Kiosk and PaceBlade Japan, are using processors from Via Technologies.

NPD Group analyst Stephen Baker was sceptical of how much appeal the first round of devices will have. "It's a product in search of a market," he said. It's too expensive for the things it does, Baker said, and is "too under-featured to do some of the other things it needs to do."

One opportunity exists, Baker said, if hardware makers can bring down the price tag by convincing cellular carriers to subsidise the product for buyers that sign up for new wireless service.

Intel, too, sees a bigger market if the industry can produce smaller devices with better battery life and a lower price tag. It showed its concept devices on Tuesday at its annual Intel Developer Forum.

The first generation devices are "going to be great for early adopters", Intel marketing director Brad Graff said. But for the masses: "These are bigger than what we want."

As for the next generation, Microsoft is already working on how to equip future devices with Windows Vista, the operating system update coming later this year. Vista has built-in support for touch screens and power-management features that could be useful Origami devices. Krammer said Microsoft hopes to have ultramobile PCs running Vista available as soon as the new Windows version ships.

Ina Fried writes for CNET News.com