This time next year Steve Jobs may take to the stage and introduce the iPad 3, while Microsoft is still working on a tablet-tailored Windows, according to a Bloomberg report. A few months after, though, Microsoft will release a tablet-friendly version of Windows in time for the 2012 back-to-school season, according to the report's unnamed sources.

One year into the tablet revolution, Microsoft still does not have a viable tablet operating system optimized for touch use. The company is only catching up in the smartphone area with Windows Phone 7, which is already late to the party started in 2007 by the original iPhone. Now, with a second iPad on the market, as well as strong upcoming competition from Android and other tablet manufacturers, Microsoft could wait itself out of the game by autumn 2012.

More: http://www.pcworld.com/article/221356/