LONDON, 25 Oct: U.S. software giant Microsoft on Thursday officially launched Windows XP, the latest version of its flagship product, vowing it would be twice as big as Windows 95 amid doubts that it will reinvigorate the ailing PC industry.

The widely anticipated launch, supported by a $250 million marketing blitz, has been pre-installed on new personal computers for many weeks now. As of Thursday, versions of the software for home and corporate consumers are being sold in shops for $199 and upgrades for $99.

“The XP launch is the biggest thing we’ve done since Windows 95,” Microsoft Chief Executive Steve Ballmer told reporters at a launch demonstration here on Thursday.

Co-founder and Chief Software Architect Bill Gates is scheduled to host an even larger launch extravaganza in New York later today.

Ballmer called XP “a new standard” in uncomplicated computing. He admitted earlier versions of Windows, such as Windows NT were either strong on reliability, or, as with Windows 98, were more compatible with other programmes and hardware products, but not both.

Ballmer said XP’s trademark features were its reliability and compatibility.

His proof? He said his two sons, aged 6 and 9, tried to play their favourite computer game on Windows 2000 and they couldn’t get it running.

“I brought Windows XP home. Never had a problem. It’s never crashed,” he said.

Still, observers question whether a new operating system can jumpstart a sagging PC industry.

Microsoft said demand for XP has been encouraging. The company reported that consumers have pre-ordered 100,000 units of XP, while another 30 million PCs are ready to ship with the new operating system.

On the corporate side, there have been 150,000 deployments of the software at businesses already, including on 80,000 desktops at CitiGroup, Ballmer said. The company added there are over 1 million XP enterprise software commitments.

Ballmer said he expects XP to be rolled out twice as quickly as Windows 95. He declined to discuss the financial impact though.

The software is much more than a simple operating system to run a computer. Microsoft has decided to bundle with it an unprecedented number of applications, such as a Web browser, an email program, an instant messenger and a digital photo editor.

Ballmer also hinted that previous Windows versions, which dominate the industry and can be found on 90 percent of all desktop computers, had been complicated to use by comparison.

BOOST: Computer manufacturers hope Windows XP will give the ailing PC industry a needed shot in the arm. Global shipments of PCs fell by over 10 percent in the third quarter, its first decline since 1986, according to recent research from Gartner Dataquest.