U.S., state to fund battery research at Argonne

The U.S. Department of Energy has chosen Argonne National Laboratory, in suburban Lemont, to become America's capital for battery technology.

The announcement, to be made Friday, will include building a research facility to coordinate the clout and brainpower of five Department of Energy national laboratories, five universities and four private companies that independently have been working to advance battery technology.

Funded with $120 million from the DOE and a $35 million commitment from Gov. Pat Quinn, the Joint Center for Energy Storage Research is expected to develop lighter, cheaper batteries for everything from smartphones to electric vehicles that store more power and charge faster.

Chicago would be the fourth so-called Energy Innovation Hub that the DOE has established since 2010. The concept is modeled after research and development programs that spurred breakthroughs in the past, such as the Manhattan Project, which produced the first atomic bomb.

Other hubs have been devoted to modeling and simulating nuclear reactors, developing fuels from sunlight, and improving energy efficiency in buildings.

Like the space race of the 1960s, the U.S. is battling other nations to be at the forefront of a rapidly growing $42 billion worldwide market for rechargeable batteries that's growing 8.6 percent per year. That number comes from research and consulting firm Frost & Sullivan, which predicts the industry's growth rate and revenues to double by 2018.

A breakthrough in battery technology would have major implications for the auto, wind and solar industries. In particular, the wind and solar industries are looking for affordable batteries to store intermittent power so they can provide power even when the wind isn't blowing or the sun isn't shining.

Batteries that store electricity from the electrical grid are also in demand in countries where outages are frequent or in the case of natural disasters that black out cities for days.

"We're going to be the center of the universe when it comes to charging batteries and storing energy," Quinn told the Tribune in an interview Thursday.

Quinn committed the state to giving $5 million to the project through a capital construction budget he controls designed for job creation and said he will work with legislators to garner an additional $30 million in state funding to help with the building's construction.

The DOE will dole out the $120 million over five years. News of the hub was first reported by Crain's Chicago Business.

A successful battery hub in Illinois, Quinn said, would drive companies in the industry to set up shop nearby and encourage scientists and engineers to stay in the Midwest.

"These people would have the opportunity to change the world. It's transformational," Quinn said.

Earlier this week, Smith Electric Vehicles announced it would make battery-powered trucks in Chicago and hire about 200 workers. Wanxiang, a Chinese automotive company with North American headquarters in Chicago, is vying to purchase bankrupt Massachusetts-based battery-maker A123. As of last week Woodridge-based Palladium Energy became the largest independent battery pack-maker in the Americas and Europe after acquiring competitor MicroSun Technologies LLC.

The Chicago-based Clean Energy Trust, a nonprofit dedicated to accelerating the development of clean-energy businesses in the Midwest, will be responsible for ushering technology from Argonne to the marketplace with the help of Dow Chemical Co., Applied Materials Inc. and Johnson Controls Inc., which all have a financial interest in seeing batteries advance. Johnson, based in Milwaukee, also is vying for the A123 battery assets.

In addition to its own scientists, Argonne would be coordinating the research and development from Lawrence Berkeley, Pacific Northwest, Sandia and SLAC National Accelerator as well as students and researchers at Northwestern University, University of Chicago, University of Illinois at Chicago, University of Illinois at Urbana-Champaign and the University of Michigan.

"I think this is probably the greatest opportunity that we have seen in a long time to bring federal funding that's intended to promote the creation of new companies and jobs," said U.S. Rep. Dan Lipinski, D-Ill.

Tribune reporter Ted Gregory contributed.

jwernau@tribune.com

Read More..

Officials: Winning Powerball tickets sold in 2 states

Powerball officials say tickets sold in Arizona and Missouri matched all six numbers to win the record the record $579.9 million jackpot; now the wait for winners has begun.

The numbers drawn Wednesday night are: 5, 16, 22, 23, 29 and Powerball of 6.

A lottery official said late Wednesday that the jackpot increased to $579.9 million by the time of the drawing, making the cash option $379.8 million. The jackpot was boosted to $500 million on Tuesday and raised again Wednesday morning to $550 million.

Powerball officials said they believed there was a 75 percent chance that the winning combination of numbers would be drawn Wednesday night.

But many of the customers who lined up at a 7-Eleven store at Wacker and Wabash believed they had a 100 percent chance of winning.

"I've got it," Marvin Harvey, 48, told the store clerk. "This is it."

And Harvey has plans. First off, having a private jet fly him and about 40 others to the SoHo neighborhood in New York City to eat and shop.

"Then take it to Paris and then go on a Mediterranean cruise," he said. "Then come back and share it with the world."

He would also give about 10 percent to churches and maybe start an organization to help the homeless. "You have so much money you have to share it," he said.

Martin Ho, 34, said he has given more thought about how to better his chances at winning the jackpot than he has about what he would do with the money.

"My goal is to have 100 different numbers between all the pools," he said. "I think I'm at (about) 90 numbers."

Ho popped into the 7-Eleven store this morning with colleague Whitney McKedy to purchase about 10 tickets jointly.

Ho said he is part of a handful of pools, including one with 50 numbers split between 10 people. He has also bought some tickets for himself.

As for what he would do with the money? "Change my name, hire a lawyer," he joked.  "I don't really think about it. It's more about the energy."

Zafer Aksit, 63, was a long way from home when he threw in $10 for lottery tickets. The radiologist flew into the city last week from Instanbul, Turkey for a medical conference. While he was in his hotel room in the Loop, he saw on the news that the jackpot had gotten up to $500 million and thought it was worth a shot.

"I thought, 'Why not?' "

Aksit insisted he wouldn't spend the money on lavish gifts on himself. "I wouldn't go on a shopping spree," he said.

He thinks the money would be better spent as investments in local businesses and non-profits, like a breast cancer clinic.

Powerball has not had a winner for two months.  Powerball is sold in Illinois and 41 other states, as well as Washington, D.C. and the U.S. Virgin Islands.

The chance of winning the Powerball jackpot are about one in 175 million, compared to about one in 280,000 for being struck by lightning.

Despite the long odds, the record payout has drawn interest from around the world, said Mary Neubauer, a spokeswoman for the Iowa Lottery, where Powerball is based. Lottery officials have received calls and emails from people outside the United States asking if they can buy a ticket from afar. They cannot.

"Sales across the country are just through the roof. It means lots of people are having fun with this, but it makes it difficult to keep up with the (jackpot) estimate."

The previous top Powerball prize of $365 million was won in 2006 by ConAgra slaughterhouse workers in Nebraska.

A $656 million Mega Millions jackpot set a world lottery record in March. That prize was split three ways. One of the winning tickets was held by Merle and Patricia Butler of Red Bud in southern Illinois. The retired couple took home nearly $119 million.

Tribune reporter Naomi Nix, the Associated Press and Reuters contributed

Read More..

Amazon's cloud chief targets "old guard" tech giants

LAS VEGAS (Reuters) - Amazon.com Inc's cloud computing division is going after big corporate customers, a new focus that will put the fast-growing unit into direct competition with some of the world's largest technology companies.

Andy Jassy, head of Amazon Web Services or AWS, criticized the hefty profit margins of what he called "old guard" tech companies on Wednesday and unveiled a new data warehousing service that he said will cost about a tenth of existing solutions.

"The old world of technology has a pricing model which is to charge as much as customers can pay. Customers are tired of it," Jassy said, during AWS's first conference in Las Vegas, Nevada, where more than 6,000 people attended.

He is banking on the division to take direct aim at tech stalwarts Oracle Corp, International Business Machines Corp and Hewlett-Packard Co, among others.

Shares of Teradata Corp., a leading independent provider of data warehouse services, fell 3.7 percent to $59.27 on Wednesday on concern about competition from AWS.

"A new competitor is entering the space with significantly lower price points," said Derrick Wood, an analyst at Susquehanna Financial Group. "That's the essence of the concern."

AWS, which Amazon started more than six years ago, provides data storage, computing power and other technology services from remote locations, making it a pioneer in what is now known as cloud computing.

AWS has grown fast because its services are cheap, relatively easy to use and can be shut off or ramped up quickly, depending on companies' needs. Evercore analyst Ken Sena expects AWS revenue to jump 45 percent a year, from about $2 billion this year to $20 billion in 2018.

The division has traditionally been used by start-up tech companies and other smaller businesses. Large corporations, known as enterprises in the tech world, have dabbled with AWS, but most shun cloud-based services for mission critical applications. Jassy said on Wednesday that is changing.

"We expect enterprises to migrate their applications to AWS," he added. "The question isn't if anymore, it's how fast it's going to move and which ones will move first."

Netflix, Royal Dutch Shell, Samsung and InterContinental Hotels Group are a few companies now using AWS, along with more than 300 government agencies and over 1,500 academic organizations, Jassy noted.

"It's increasingly less accurate to say only small companies use AWS," said Bernard Golden, Vice President, Enterprise Solutions for enStratus Networks, a cloud management software company.

AWS is targeting its new data warehouse service, called Redshift, at small businesses and large enterprises.

Companies typically pay between $19,000 and $25,000 per terabyte of storage per year for data warehouse solutions, Jassy said.

Redshift, which launches in early 2013, will cost as little as $1,000 per terabyte per year for companies that reserve the service for long periods, such as a year or more. They can also use it on-demand, which costs more, Jassy said.

Software tools that IT departments in big companies currently use to analyze data in their warehouses will work on the new Redshift service, potentially making it easier to switch, Golden said.

"All that will change will be the pricing," he added. "Teradata will be effected and Oracle, IBM and HP too - although this will impact a very small portion of the revenue for the bigger players."

Jassy said on Wednesday that AWS has the potential to be Amazon's biggest business, out-growing its original online retail operation.

AWS will do this by taking the same low-margin, high-volume approach that has turned Amazon into the world's largest Internet retailer, Jassy said.

Amazon does not disclose financial details of AWS, however, Evercore's Sena estimates profit margins below 10 percent on a net income basis. Sena forecasts margins of 22 percent, based on earnings before interest, tax, depreciation and amortization.

In contrast, Teradata has gross profit margins of about 70 percent on its data warehouse products, according to Susquehanna analyst Wood.

"The economics of what we're doing are extremely disruptive for old guard technology companies," Jassy said. "These are companies that have lived on 60 to 80 percent margins for years."

Jassy showed quotations on big screens behind the conference stage on Wednesday from executives at Oracle, IBM and Hewlett-Packard all talking about their high-margin businesses.

"The vast majority of businesses will be moving to the cloud in the next ten years," Jassy said. "We think it's a high-volume, low-margin business."

(Reporting By Alistair Barr; Editing by Bernard Orr)

Read More..

Bonds, Clemens, Sosa on Hall ballot for first time

NEW YORK (AP) — The most polarizing Hall of Fame debate since Pete Rose will now be decided by the baseball shrine's voters: Do Barry Bonds, Roger Clemens and Sammy Sosa belong in Cooperstown despite drug allegations that tainted their huge numbers?

In a monthlong election sure to become a referendum on the Steroids Era, the Hall ballot was released Wednesday, and Bonds, Clemens and Sosa are on it for the first time.

Bonds is the all-time home run champion with 762 and won a record seven MVP awards. Clemens took home a record seven Cy Young trophies and is ninth with 354 victories. Sosa ranks eighth on the homer chart with 609.

Yet for all their HRs, RBIs and Ws, the shadow of PEDs looms large.

"You could see for years that this particular ballot was going to be controversial and divisive to an unprecedented extent," Larry Stone of The Seattle Times wrote in an email. "My hope is that some clarity begins to emerge over the Hall of Fame status of those linked to performance-enhancing drugs. But I doubt it."

More than 600 longtime members of the Baseball Writers' Association of America will vote on the 37-player ballot. Candidates require 75 percent for induction, and the results will be announced Jan. 9.

Craig Biggio, Mike Piazza and Curt Schilling also are among the 24 first-time eligibles. Jack Morris, Jeff Bagwell and Tim Raines are the top holdover candidates.

If recent history is any indication, the odds are solidly stacked against Bonds, Clemens and Sosa. Mark McGwire and Rafael Palmeiro both posted Cooperstown-caliber stats, too, but drug clouds doomed them in Hall voting.

Some who favor Bonds and Clemens claim the bulk of their accomplishments came before baseball got wrapped up in drug scandals. They add that PED use was so prevalent in the 1980s, 1990s and early 2000s that it's unfair to exclude anyone because so many who-did-and-who-didn't questions remain.

Many fans on the other side say drug cheats — suspected or otherwise — should never be afforded the game's highest individual honor.

Either way, this election is baseball's newest hot button, generating the most fervent Hall arguments since Rose. The discussion about Rose was moot, however — the game's career hits leader agreed to a lifetime ban in 1989 after an investigation concluded he bet on games while managing the Cincinnati Reds, and that barred him from the BBWAA ballot.

The BBWAA election rules allow voters to pick up to 10 candidates. As for criteria, this is the only instruction: "Voting shall be based upon the player's record, playing ability, integrity, sportsmanship, character, and contributions to the team(s) on which the player played."

That leaves a lot of room for interpretation.

Bonds, Clemens and Sosa won't get a vote from Mike Klis of The Denver Post.

"Nay on all three. I think in all three cases, their performances were artificially enhanced. Especially in the cases of Bonds and Clemens, their production went up abnormally late in their careers," he wrote in an email.

They'll do better with Bob Dutton of The Kansas City Star.

"I plan to vote for all three. I understand the steroid/PED questions surrounding each one, and I've wrestled with the implications," he wrote in an email.

"My view is these guys played and posted Hall of Fame-type numbers against the competition of their time. That will be my sole yardstick. If Major League Baseball took no action against a player during his career for alleged or suspected steroid/PED use, I'm not going to do so in assessing their career for the Hall of Fame," he said.

San Jose Mercury News columnist Mark Purdy will reserve judgment.

"At the beginning of all this, I made up my mind I had to adopt a consistent policy on the steroid social club. So, my policy has been, with the brilliance in the way they set up the Hall of Fame vote where these guys have a 15-year window, I'm not going to vote for any of those guys until I get the best picture possible of what was happening then," he wrote in an email.

"We learn a little bit more each year. We learned a lot during the Bonds trial. We learned a lot during the Clemens trial. I don't want to say I'm never going to vote for any of them. I want to wait until the end of their eligibility window and have my best idea of what was really going on," he said.

Clemens was acquitted this summer in federal court on six counts that he lied and obstructed Congress when he denied using performance-enhancing drugs.

Bonds was found guilty in 2011 by a federal court jury on one count of obstruction of justice, ruling he gave an evasive answer in 2003 to a grand jury looking into the distribution of illegal steroids. Bonds is appealing the verdict.

McGwire is 10th on the career home run list with 583, but has never received even 24 percent in his six Hall tries. Big Mac has admitted to using steroids and human growth hormone.

Palmeiro is among only four players with 500 homers and 3,000 hits, yet has gotten a high of just 12.6 percent in his two years on the ballot. He drew a 10-day suspension in 2005 after a positive test for PEDs, and said the result was due to a vitamin vial given to him by teammate Miguel Tejada.

Biggio topped the 3,000-hit mark — which always has been considered an automatic credential for Cooperstown — and spent his entire career with the Houston Astros.

"Hopefully, the writers feel strongly that they liked what they saw, and we'll see what happens," Biggio said last week.

Schilling was 216-146 and won three World Series championships, including his "bloody sock" performance for the Boston Red Sox in 2004.

___

AP Baseball Writer Janie McCauley and AP Sports Writers Arnie Stapleton and Dave Skretta contributed to this report.

Read More..

‘The Inbetweeners’ Canceled by MTV

LOS ANGELES (TheWrap.com) – “The Inbetweeners” now falls solidly in the “canceled” camp.

MTV has decided not to go forward with a second season of the scripted series, which premiered in August and was an adaptation of a British sitcom of the same name.

“While we won’t be moving forward with another season of ‘The Inbetweeners,’ we enjoyed working with the show’s creators and such a talented, funny cast,” an MTV spokesperson told TheWrap in a statement.

The series starred Joey Pollari, Bubba Lewis, Zack Pearlman, Mark L. Young and Alex Frnka as a group of “inbetweeners” – that is, kids who fall somewhere between nerds and jocks on the spectrum of teenage cliques.

The “Inbetweeners” cancelation follows the dropping of the MTV scripted effort “I Just Want My Pants Back” in May after one season.

TV News Headlines – Yahoo! News

Read More..

Simple measures cut infections caught in hospitals

CHICAGO (AP) — Preventing surgery-linked infections is a major concern for hospitals and it turns out some simple measures can make a big difference.

A project at seven big hospitals reduced infections after colorectal surgeries by nearly one-third. It prevented an estimated 135 infections, saving almost $4 million, the Joint Commission hospital regulating group and the American College of Surgeons announced Wednesday. The two groups directed the 2 1/2-year project.

Solutions included having patients shower with special germ-fighting soap before surgery, and having surgery teams change gowns, gloves and instruments during operations to prevent spreading germs picked up during the procedures.

Some hospitals used special wound-protecting devices on surgery openings to keep intestine germs from reaching the skin.

The average rate of infections linked with colorectal operations at the seven hospitals dropped from about 16 percent of patients during a 10-month phase when hospitals started adopting changes to almost 11 percent once all the changes had been made.

Hospital stays for patients who got infections dropped from an average of 15 days to 13 days, which helped cut costs.

"The improvements translate into safer patient care," said Dr. Mark Chassin, president of the Joint Commission. "Now it's our job to spread these effective interventions to all hospitals."

Almost 2 million health care-related infections occur each year nationwide; more than 90,000 of these are fatal.

Besides wanting to keep patients healthy, hospitals have a monetary incentive to prevent these infections. Medicare cuts payments to hospitals that have lots of certain health care-related infections, and those cuts are expected to increase under the new health care law.

The project involved surgeries for cancer and other colorectal problems. Infections linked with colorectal surgery are particularly common because intestinal tract bacteria are so abundant.

To succeed at reducing infection rates requires hospitals to commit to changing habits, "to really look in the mirror and identify these things," said Dr. Clifford Ko of the American College of Surgeons.

The hospitals involved were Cedars-Sinai Medical Center in Los Angeles; Cleveland Clinic in Ohio; Mayo Clinic-Rochester Methodist Hospital in Rochester, Minn.; North Shore-Long Island Jewish Health System in Great Neck, NY; Northwestern Memorial Hospital in Chicago; OSF Saint Francis Medical Center in Peoria, Ill.; and Stanford Hospital & Clinics in Palo Alto, Calif.

___

Online:

Joint Commission: http://www.jointcommission.org

American College of Surgeons: http://www.facs.org

___

AP Medical Writer Lindsey Tanner can be reached at http://www.twitter.com/LindseyTanner

Read More..

'That 70s Show' star arrested in North Carolina

STATESVILLE, N.C. (AP) — "That '70s Show" star Lisa Robin Kelly is free on bond after being arrested for assault.

Police in the Charlotte, N.C., suburb of Mooresville arrested the 42-year-old Kelly and 61-year-old husband Robert Joseph Gilliam after responding to a disturbance at their home Monday. Both are free on bond.

Gilliam is charged with misdemeanor assault on a female. Kelly is charged with misdemeanor assault. They were taken to the Iredell County Detention Center and released on $500 bond apiece. They have a court date of Jan. 25. It's not known if either has an attorney.

Kelly portrayed Laurie Forman, sister of Topher Grace's lead character Eric, on the FOX series, which ended in 2006. She also appeared on the TV shows "Murphy Brown" and "Married . . . With Children."

Read More..

Groupon CEO Mason offers to step down

Groupon Inc Chief Executive Andrew Mason, under fire for a plunging share price and tapering growth, declared on Wednesday he would fire himself if he ever thought he was the wrong man for the job.

Mason, whose performance at the helm will come under scrutiny from his board of directors during a regular board meeting Thursday, said it would be "weird" if they did not. But he said he believed the board was comfortable with his strategy.

Shares in the company, once touted as innovating local business advertising t hrough the marketing of Internet discounts on everything from spa treatments to dining, surged 8 percent to $4.25 i n the afternoon.

"It would be more noteworthy if the board wasn't discussing whether I'm the right guy for the job," Mason said in an interview from a Business Insider conference in New York. "If I ever thought I wasn't the right guy for the job, I'd be the first person to fire myself."

"As the founder and creator of Groupon, as a large shareholder ... I care far more about the success of the business than I do about my role as CEO," he said.

Groupon has shed four-fifths of its value since its public trading debut as an investor favorite during last year's consumer dotcom IPO boom, and Mason himself has presided over a string of high-profile executive departures.

Wall Street has grown uneasy about the viability of its business as fever for daily deals has cooled among consumers and merchants, hurting its growth rate.

In the interview broadcast from the conference, the outspoken and sometimes-zany co-founder argued his company was going through a period of volatility but believed it was on the right path. Groupon's efforts to reduce its reliance on plain vanilla deals include bumping up its "Goods" retail business, increasing the selection of "persistent" or long-running deals, and allowing users to search for such deals on demand.

Shares in Groupon spiked after the interview and were up 8 p ercent at $4.2 6, still way below its $20 market debut price.

Groupon and rivals in the daily deals business, like Amazon.com-backed LivingSocial, were supposed to change the very nature of small-business advertising. Instead, they were forced to revamp their business models as evidence mounts that their strategy was flawed.

This month, Groupon reported another quarter of disappointing earnings, and its stock went as low as $2.60 on Nov. 12.

Europe has been a particular problem for Groupon, partly because the sovereign debt crisis has sapped demand for higher-priced deals. Groupon was also offering steeper discounts, turning off some European merchants.

International revenue, which includes Europe, grew just 3 percent to $277 million in the third quarter, while North American revenue surged 80 percent to $292 million.

Adding to its difficulties, the U.S. Securities and Exchange Commission is looking into Groupon's accounting and disclosures, areas that raised questions among some analysts during its IPO.

But Mason shrugged off speculation that the company might run into a cash crunch and go bankrupt. The company has said it had $1.2 billion in cash and equivalents with no long-term debt.

"There was a period when those stories started that I'd go to my CFO and say: 'How would that happen, walk me through what would be required for us to actually go bankrupt'," Mason said. "And it's like an end of days, apocalyptic scenario. The business would have to go into severe negative growth for something like this. The scenario is so absurd there's no evidence for it."

Read More..

Charges dropped against NIU officer

Sex assault charges against a former Northern Illinois University police officer were dropped Tuesday after new revelations of possible irregularities in the investigation surfaced, the officer’s attorney said.

The charges against Andrew Rifkin were dropped following a hearing where a campus police IT specialist testified that he was summoned around 10 p.m. on Nov. 9, by NIU Police Chief Donald Grady and was told to remove between 60 and 70 files from the chief’s computer, Rifkin attorney Bruce Brandwein said.

Earlier that day, university administration had appointed a new supervisor to oversee Grady and the department. That same day, a DeKalb County judge had ordered the NIU police to sign an affidavit confirming that all evidence in the Rifkin case had been handed over to county prosecutors, following a previous finding that the department had withheld evidence.

Grady was placed on administrative leave the following day.

Brandwein said the specialist did not know whether the files he removed pertained to the Rifkin investigation, but Brandwein said he found the timing curious.  After hearing about the removal of the files, DeKalb County State’s Atty. Clay Campbell told the judge that prosecutors would drop the charges against Rifkin, Brandwein said.

“It was incredible,” he said. “I applaud the state’s attorney for doing the right thing.”

An attempt to reach Campbell for comment was not successful Tuesday night.

Rifkin, 25, was fired from the department in October 2011 after it was alleged he sexually assaulted an NIU student. However, the NIU police’s investigation of the case came under fire this month when it was learned that the department had failed to turn over reports of witnesses who indicated that Rifkin and the student had engaged in consensual sexual activity.

Those reports ended up in a personnel file in what the NIU police said was an oversight. But DeKalb County Judge Robin Stuckert called it an “egregious” error and ruled that the department had purposely withheld the evidence.

That prompted university officials to place Grady on leave, pending a final disciplinary action. NIU also said it plans to terminate the officer who conducted the investigation against Rifkin.

chicagobreaking@tribune.com
Twitter: @chicagobreaking

Read More..

Microsoft sold 40 million Windows 8 licenses in month: exec

SEATTLE (Reuters) - Microsoft Corp has sold 40 million Windows 8 licenses in the month since the launch, according to one of the new co-heads of the Windows unit, setting a faster pace than Windows 7 three years ago.

The sales number represents a solid but unspectacular start for the touch-friendly operating system designed to combat Apple Inc's and Google Inc's domination of mobile computing, which has shunted aside PCs in favor of iPads and smartphones.

Tami Reller, finance and marketing head of the Windows business, did not give a precise comparison, but sales of 40 million licenses for Windows 8, launched on October 26, appear to be ahead of Windows 7, which sold just over 60 million units in the first 10 weeks on sale at the end of 2009.

Reller did not break down the Windows 8 license sales between relatively cheap upgrades and purchases of new machines running the new software, but suggested much of the growth was coming from upgrades.

"Windows 8 upgrade momentum is outpacing that of Windows 7," said Reller, speaking at an investor conference held by Credit Suisse. Upgrading to Windows 8 costs $40, compared to $70 for the full software package or hundreds of dollars for a new PC.

The latest figure does not mean that 40 million users have adopted Windows 8. Many of the sales are to PC manufacturers, who in turn sell a large number of machines to companies, very few of which are using Windows 8 yet.

According to tech research firm StatCounter, about 1 percent of the world's 1.5 billion or so personal computers - making a total of around 15 million - are actually running Windows 8.

Reller did not disclose sales of Microsoft's new Surface tablet, its first-ever own-brand PC, designed to challenge the iPad head on.

The first Surface, based on a chip designed by ARM Holdings Plc, does not run old versions of Microsoft programs. A slightly bigger version based on an Intel Corp chip that will run the full Windows 8 Pro operating system and be fully compatible with the Office suite of applications will be available in January, Reller said.

The investor conference was the first public appearance for Reller since she was named as one of two executives to run the Windows unit after president Steven Sinofsky unexpectedly left two weeks ago. Julie Larson-Green heads the engineering side of Windows.

Reller said the Windows unit had survived Sinofsky's surprise departure.

"The team holistically is in great, great shape. And the product is in great shape," she said, responding to a question from a Credit Suisse analyst. "I think transitions are always somewhat of a challenge, but I think that timing-wise it is a reasonable time, and the team is busy."

Earlier in the day, Microsoft said it had sold more than 750,000 Xbox game consoles in the United States last week, including the day after Thanksgiving, one of the country's biggest shopping days.

That is down from 960,000 sales in the same week a year ago, in line with reduced computer game spending across the board this year, as gamers hold off on purchases in the tight economy and move toward free online games.

(Reporting by Bill Rigby; Editing by Gary Hill, Andre Grenon and Bernard Orr)

Read More..