Microsoft Carves Out Casino Niche

Microsoft(MSFT Quote) indicated the intended market for its Surface computer-in-a-table when it signed a manufacturer to distribute it: International Game Technology(IGT Quote), which makes casino gaming equipment.

Microsoft announced the computer at a Wall Street Journal technology conference Wednesday. The company said Harrah's Entertainment(HET Quote), Starwood Hotels & Resorts Worldwide(HOT Quote) and T-Mobile also will put the computer to use.

The most radical thing about Microsoft's new offering is its use of an infrared touch-screen interface, instead of the usual resistive or capacitive touch-sensitive technologies, according to Ian Lao, senior analyst at In-Stat. The IR screen will be immune to damage from spilled drinks and food, he said.

Infrared screens are the technology of choice for the military, due to their durability. The surface tabletop is acrylic.

Because Microsoft's announced partners are entertainment companies, Surface takes Microsoft into new territory, outside its usual comfort zones of PC software and video game platforms.

"This is a much smaller, handier version of the old kiosk" used for gaming at casino bars, Lao said. The software that would be preloaded onto any given Surface computer would depend upon its location. Lao said it would likely come with Microsoft's Vista operating system in locations where travelers want to check email or browse the Internet.

"If I use the concept of a traditional gaming machine or kiosk, those are dedicated function units. Now you have the opportunity to get a GP [general purpose] box," Lao said.