After three years of evading questions over why it was so far behind Apple's iPhone, Microsoft is staging a comeback in the mobile business with a remarkably redesigned mobile operating system.
The company said Monday it will retire Windows Mobile 6.5 this year and has returned from the drawing board with Windows Phone 7 Series, a system that breaks free of the previous PC-centric design.
Chief Executive Steve Ballmer introduced the new system at the global Mobile World Congress in Barcelona, Spain.
For Microsoft, the progress could be a pick up again for a mobile business unit that some believe has been missing from action during a period of major innovation.
With the new software, Microsoft also showed a shine of the potential locked inside the company's apparently distinct businesses, integrating them into a single device that could be greater than the sum of its parts — video-gaming service Xbox Live, music and video player Zune HD, search engine Bing, Office productivity software and Outlook e-mail.
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