Gates, Microsoft's chairman and co-founder, was vague on specific features of Xenon but said the company's consoles would be evolving to include improved communications tools for making multiplayer online gaming more convivial.

He told the annual meeting of the Society of American Business Editors and Writers that Xenon's software menu would be similar to that of the company's Media Center edition of Windows, which is designed for computers meant to be in the living room.

"If you're used to that menu, when you use this Xenon you'll see a menu a lot like that that lets you get photos, TV, music and all those different things."

Video-game players want to be able to chat with their buddies, know when others are present online, and will want to access their music and photos on their consoles in an interface already familiar to them, Gates said.

At a convention of hardware engineers last week, Gates said the company's investments in Windows Media Center software have paid off, with more than a million copies sold since the launch of the operating system's second version in October and a total of 2 million since the initial system shipped three years ago.

Gates also called the Web log phenomenon fantastic and joked that it has become more difficult than ever to provide a single company message to the public given the number of Microsoft employees who are now blogging publicly.

"I keep thinking about when am I going to start doing a blog," he said in answer to a question. "My rate (of posting) has proven to be irregular so far. When I turn out at least two a month they'll put me online," he joked.

The Microsoft chairman also drew guffaws when he took a dig at Apple Computer Inc. in response to questions about the rave reviews the competitor's newest operating system, Mac OS X "Tiger," received upon release last week.

Gates said he was pleased that the media was getting excited about computer operating systems. And then he took his jab at Apple, whose share of the consumer market is nearly 4 percent.