Microsoft also says that they will make its Live Search programs the default search engines on more personal computers and mobile phones.
"It feels like we've entered a period of reduced expectations, a time when we may be tempted to temper our optimism and scale back our ambitions," Ballmer said, in a nod to the recession. "But no matter what happens with the economy or how long this recession lasts, I believe our digital lives will only continue to get richer."
Ballmer is hoping to boost the number of people using Microsoft's Live Search engine. Through a deal with PC maker Dell Inc., Dell will put a special Live Search browser toolbar and Windows Live programs, including Microsoft's e-mail and instant-messaging applications, on most of the consumer and small-business PCs that it sells worldwide. That deal replaces a relationship between Dell and Google.