Microsoft

(MSFT) - Get Report

was up 0.1% in preopen

Island

trading after announcing it would unveil new versions of its main products later this year and will call them Windows XP and Office XP.

After Friday's close, the software company announced that it would stop giving a $400 rebate to new subscribers to its

MSN

Internet access business. Instead, it will offer a free year of MSN to buyers of new PCs.

Microsoft indicated last month that the rebate was taking an unexpectedly large toll on earnings.