Technology innovation is a marathon for companies the size and scale of Microsoft. By consistently investing in their products and technologies, these companies and their customers are rewarded with incremental yet significant product advances over time, along with the "legs" to sometimes make sprints forward. Microsoft's measured-race plan produced both types of innovation in 2004. The company's annual investment in research and development -- US$6.8 billion in FY2004 -- produced significant incremental advances in a broad range of the company's products and services over the past year -- from innovative new digital entertainment offerings to security enhancements for its flagship software products. It also spurred a few giant leaps forward, including the groundbreaking new Xbox game, Halo 2.
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