Microsoft Puts Vista Operating System on Hold

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Microsoft will delay the consumer version of Vista, the next version of Windows, until January 2007, the company announced Tuesday. But a version for business will be released in November of this year. Shares of Microsoft (MSFT) are down -0.59 (-2.13%) to $27.15 in the early morning trading session.

The news ruffled investors who have been assuming that Vista, which is seen as the company’s most important product release in years, will ship on time and be a catalyst for strong sales growth. In after-hours trading on Instinet shares were off about 3% to $27.74 on the news. Jim Allchin, Microsoft’s Windows czar, said businesses that buy Windows via licenses will be able to get Vista in November. New PCs for consumers will be loaded with Vista as of January, he said on a call with analysts and reporters.

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