Bill Gates shows off Mira

Mira is software for a wireless flat-panel display, which can detach and be carried around the house like a portable touch-screen tablet, while still communicating wirelessly with the computer.

Mr Gates said companies like Intel were working on creating products based on Mira that would be out within 12 months.

As for Freestyle, the Microsoft chairman explained how the software would allow people to use a remote control to play music and video or look at pictures stored on the PC through any screen.

Video PCs

With Freestyle, users would be "able to use your PC without having to sit at your keyboard, but instead simply using a remote control", said Mr Gates.

"You can watch TV on one screen and then receive e-mail through another screen," explained Mr Gates.

"Once material is on the PC, you can play it on any screen - TV, PC monitor or any where else."

The software would also allow people to record video on their PCs if their machines have a TV tuner card. This would turn the PC into an "entertainment command centre" with the potential to rival digital video recorders such as the Tivo device.

The software giant is working with Hewlett-Packard, NEC and Samsung to develop computers built around Freestyle.

XP 'success'

Both Mira and Freestyle are based on Windows XP, which Microsoft aims to develop as the backbone for a whole range of products.

Mr Gates touted the success of Windows XP, saying more than 17 million copies have been sold since its launch at the end of October.

Microsoft's first venture into the world of game consoles, the Xbox, was also selling well, he said, with 1.5 million units sold since mid-November.

The company is now looking at developing online gaming for the console, and widening the range of games available.