Once again, comments made by Microsoft CEO Steve Ballmer during an analysts' briefing two weeks ago are being bandied about by the press as "confirmation" that the company plans to produce a slimmed-down, netbook-ready SKU of Windows 7. However, a complete read of Ballmer's comments, as transcribed by Microsoft (Word document available here), indicate that this isn't what Ballmer said at all. In fact, he seemed intentionally vague on the topic, making clear the company was certainly thinking about the prospect of a netbook Win7 SKU, but confirming nothing.
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