Gates taking a seat in your den

January 5, 2005, 6:30 PM PT By Michael Kanellos Staff Writer, CNET News.com

LAS VEGAS--Bill Gates is coming to your living room, whether you like it or not.

Microsoft's chairman is setting the company on a course to provide software and tools that will allow different forms of entertainment to blend. Messaging will become a crucial part of Xenon, the code name for the next Xbox. Microsoft will also work with television outlets like the Discovery Channel and MTV Networks to create tools for delivering content, as well as advertising, into the home.

Its eyes ever set on the competition, Microsoft will continue to raise the stakes against Apple Computer in the music industry and against Google and Yahoo in search.

Meanwhile, Microsoft Research is working on ways to reduce the cost of getting people in emerging nations hooked on the Internet. One idea: Mesh networks that will let several families share connections.

Gates spoke with CNET News.com on the eve...

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