Mr Bill Gates has predicted 2002 will be a defining year for consumer technology with the extension of broadband networks and the growth of smart-connected devices in the home.
Speaking at the International Consumer Electronics Show today, the Microsoft president said: "Technology advances are enabling a new generation of end-to-end experiences for the consumer in areas such as music, photos, video, communications and gaming.
"The opportunities for the consumer electronics, software and media industries have never been greater, and this cycle of innovation has the potential to provide valuable stimulus to the economy".
Mr Gates also said Microsoft's new Windows XP operating system has sold over 17 million units since its launch two months ago.
He announced the launch of Windows CE .NET, a real-time embedded operating system that will allow developers to build the next generation of mobile and small-footprint smart devices, such as handheld devices, smart phones, TV set-top boxes.
He said: "Microsoft's strategy for making XML Web services available through the Microsoft .NET Platform will begin to yield direct benefits to consumers this year.
"While Windows XP provides the foundation that enables devices to work better together, .NET will help provide a consistency of user experiences across devices and services from Microsoft, its industry partners and the industry as a whole".
Mr Gates also announced Microsoft is delivering a set of Windows technologies, code-named "Mira", that will enable PC and consumer electronics companies to create a new generation of smart displays that will extend Windows XP to anywhere in the home.