This throws the launch of the next version of Windows (codenamed 7, formerly Vienna) into doubt, possibly pushing it back as far as 2010 - something that Microsoft has hinted at anyway.
PC makers disappointed
If true, the news will compound the misery some PC makers are feeling. Many had expected a hardware sales boom after Windows Vista launched in January. That didn't happen. Acer President Gianfranco Lanci told Financial Times Deutschland :
"The entire industry is disappointed by Windows Vista... And that's not going to change in the second half of this year."
Microsoft plans to launch a beta version of Windows Vista SP1 later this year.