Steve Ballmer said that the company’s new operating system will pull it out of the worst period of its history.
Steve Ballmer said Windows 7, which launches at the end of the month, will succeed where its unpopular predecessor Vista failed.
Although nine out of ten computers runs some form of Windows programme, the world’s largest software maker has been bruised by the global downturn.
Profits at Microsoft fell by almost a third in the quarter between April and June.
The company also announced that revenues fell for the first time in its 34-year history.
Windows 7 menu
The chief executive admitted it had been the worst period he had known at the company but attributed the problems to the recession, rather than a bad business model.
And he insisted the launch of the new operating system would revive Microsoft’s fortunes.
“Eight million copies (of Windows 7) are out on Beta tests and people love it,” he said.
“We have 50,000 people hosting parties for their friends to celebrate the launch of Windows 7.”
Mr Ballmer said he was confident the company’s new search engine Bing.com would, over time, prove a challenger to Google, which currently accounts for 90% of all searches.
“Fifty percent of the time people don’t find what they are looking for on a search,” he added.
“There’s so much opportunity there to innovate and to make a difference.”
Mr Ballmer said he was very excited about Microsoft’s partnership with Yahoo, a tie-up which is still in the process of being finalised.
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A special episode of the adult cartoon comedy show Family Guy will air on 8 November with exclusive Microsoft sponsorship, the Fox network has announced, in a move executives hope will redress the publicity balance for Windows 7, which has so far struggled to attract anything but derision for Microsoft’s promotional efforts.
The half-hour show, whose working title is “Family Guy Presents: Seth & Alex’s Almost Live Comedy Show,” will star series creator Seth MacFarlane and his co-star Alex Borstein.
The special will air without traditional commercials and instead will feature Microsoft-branded programing that Fox said will blend with the show’s content. The show will promote Microsoft’s latest operating system, Windows 7, which will be released October 22.
The special will include original animation, live-action performances of “Family Guy” musical numbers, comedy sketches and celebrity guests. The network’s programing that evening will showcase an all-MacFarlane lineup, with new episodes of “American Dad,” “The Cleveland Show” and “Family Guy.”
Microsoft will be keen to gain ground in their efforts to publicise their new iteration of Windows after a previous effort involving an online video encouraging computer users to take the unusual step of throwing a party to celebrate the new operating system’s release fell flat.