Ooohh… new internet toys from Microsoft are pending…

Steve Ballmer - CEO of MicrosoftMicrosoft Corp. says it is creating more than 130 new positions to start a research unit focused on Internet technologies — trying to speed up its product release cycles as it takes on Google and other rivals in the increasingly competitive online world. The unit, Microsoft Live Labs, will work on prototypes and other online projects that the company expects to bring to market more quickly and update more regularly than normal, based on user response.

Led by Gary William Flake, the former Yahoo Research director who joined Microsoft last year, it’s a joint effort of Microsoft Research and the company’s MSN division.

“It’s something that is largely inspired by witnessing how product innovation is happening on the Internet, in this much more liquid manner,” Flake said.

The Live Labs group is the latest step in the company’s effort to translate its dominance of PC software into a stronger position online. It ties into Windows Live, an initiative Microsoft announced last year as part of an effort to make more money from online advertising and subscription fees.

READ: Microsoft Pushes Internet Research

YAY!!!! Bring it on!!!

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