LAS VEGAS, Jan 8: Microsoft Chairman Bill Gates on Saturday showed off a hatbox-shaped computer for the living room and a video game machine that plays Internet TV, arguing years of hype about a world of connected technology finally was coming true.

Computers will come in all shapes and sizes as Microsoft's long-awaited new Windows Vista reaches consumers later this month, Mr Gates said as he opened the annual Consumer Electronics Show in Las Vegas, the largest of its kind in the United States.

He also said Microsoft would offer an Xbox 360 game console that doubles as a set-top box for its fledgling Internet Protocol TV (IPTV) service, which delivers high-quality video over Internet networks.

The Microsoft co-founder highlighted Vista's ability to handle various forms of digital media on an eye-catching, round living room computer, shaped like a sleek hat box, from Japan's Sony Corp. and a touch-screen desktop PC from Hewlett-Packard Co.“The word PC is now a word that encompasses a lot of different things, from a 6-inch screen to a 60-inch screen,”

Mr Gates told newsmen in an interview before the speech.

The new PCs running Windows Vista will be released to the public on Jan 30.

Analysts forecast that new PC sales could get a boost over the next few years as businesses and consumers upgrade to Vista, lauded by Microsoft for its improved security, flashy graphics and easier search for hard drive content.—Reuters