Bill Gates held his traditional CES keynote Sunday evening in Las Vegas.

You can watch the 90 min. keynote as streaming video already on the MS CES blog.

The Microsoft keynote highlights are IPTV for Xbox 360, which will hit us in the Holiday season of 2007. Of course Windows Vista was a topic, Windows for mobile phones and the Ford partnership.

I stopped watching the keynote when the Windows Vista demo started, as they highlighted desktop search as a cool new feature. Just get free Google Desktop and start finding today. So overall no real bomb that Microsoft delivered in this keynote. The new Xbox 360 with HDMI and IPTV is burning hot but already leaked over the weekend. It will give Apple's iTV some competition.
See a couple of Xbox 360 IPTV screens on Engadget.

See also the transcript of the Microsoft keynote here.