The end of an era.

Mr. Bill Gates kicked off the annual CES with his customary welcome speech, made all the more pertinent by the fact that this is to be his last address, as he will be stepping down from the top job at Microsoft. However, being the consumate professional that he is, didn't forget to make one of his usual all-seeing, almighty predictions. This year - technology will enter a second digital decade meaning technology will be in every room of the home, on screens and walls, even being built into tables.

I have absolutely no reason to doubt Mr. Gates - roughly a decade ago, Mr. Gates predicted there would be a computer on every desk, something that has been proved absolutely correct, with two per desk even accepted.

And whether you like his software or not right from his operating systems through to his office suites, were it not for them, we simply wouldn't have the capability to work as we do today. Just think about it, you probably think of writing a letter, with your own personalised letterhead, but even if we go back just twenty years, a letterhead would require an order with a printing company, if you could justify the expense of ordering the minimum amount, before attempting to print your letter on a clunky dot matrix printer.

If Apple had their way we'd be using their software, on overpriced hardware, which for a very long time at least, has been out of the reach of the average home user - Microsoft made the software independent, and because of that we are where we are today.

Of course, it's not all good - Microsoft make far too much money, they buy up emerging companies left right and centre therbey eliminating competition before it even establishes itself and critics still maintain they are lakcing in creativity, simply copying the very best ideas from other companies.

All of that is probably true, but the simple fact is if Mr. Gates didn't "copy" the idea of the GUI and brought the idea to market in the 1980's there's every opportunity that the home market in particular may not have taken to computing technology the way it has. We could still be in an era wherbey if we need an official letter written, we'll just ask someone who's got access to a computer at work.

Apple today take the credit for creating "home friendly" computer systems, not only in terms of looks but also by virtue of the fact they are packaged with basic home productivity software - they were never intended for the home - particularly in terms of price, but this simply isn't justified in my eyes. This is confirmed by their insistence to have total control over both hardware and software, even today - and this is where Microsoft, and Mr. Gates demonstrated genuine foresight like no other.

Today Microsoft's revenues of $50 billion are over double that of Apple's $24 billion. The simple reason for this is the very simple fact that Mr. Gates realised before Jobs, the real income is generated by the hardware - not the software. Of course, it could be said that Apple's star is on the up, iPod sales seem to be unstoppable while the Zune in comparison is an abysmal failure - but what's the betting that more iPods run on Windows PCs as opposed to Mac OS systems?

It could also be argued that Microsoft may very well be talking up the second digital decade, having already missed the boat. The chaps at Google, who incidentally seem to be the only group Microsoft are openly afraid of, have bought YouTube - the favourite provider of te very data that Mr. Gates will appear in every room across the home, whilst the XBox requires numerous upgrades before it can form a part of the hub of the new digital hub - The PS3 can perform that task out of the box. Nonetheless, Microsoft's investment in this arena can be seen via the development of the Microsoft Home Server and new Surface technology (I supposed you could affectionately call it the Microsoft Windows Touch, for tables 1.34). All is not lost for Microsoft i am sure - apart from their leader of course.

Elsewhere at CES I think the big news has to be that Blu-Ray will end up as winner in the new format wars, meaning Sony hasn't produced another Betamax, thanks to the impending announcement that Warner Bros will exclusively back that format. The question is - does the average consumer really care? Sure, DVD sales have begun to slip, but with a brand new film retailing at around £10, with perfectly viewable picture quality, what is the incentive in anyone replacing their entire collection of DVD's with higher priced Blu-Ray discs, that may only offer negligible improvements in picture quality, in the eyes of many. Especially those still clinging on to their VHS collections. Mind you, it's another reason to get a PS3 and perhaps that's why Mr. Gates announced Xbox Live users will be able to download movies from the likes of MGM, Disney and ABC. Furthermore, UK users will be the first in the world to be able to get access to internet TV via BT. Mind you, what's wrong with a Freeview box?

Interesting times ahead then. At least according to Mr. Gates. As well as the many spot on assumptions he has made, don't forget this is also the man who thought the internet would have very little impact on our lives. I'd probably hold the order for the touch screen table for a while, at least.