Microsoft’s SVP of Strategy and Partnership Hank Vigil will be leaving the software giant to focus on investing in and advising for early-stage start-up companies, according to an internal email from CEO Steve Ballmer.

But the 25-year company veteran, who will departs Microsoft in the fall, will also become a “strategic advisor” to Microsoft.
That’s probably a good idea, since Vigil is one of the company’s most visible and well-liked execs in the tech community, especially in Silicon Valley.

He also is Microsoft’s best-dressed exec, if I might be so bold to say.

Vigil has had wide-ranging jobs all over Microsoft in his many years there.

He has most recently been working directly with Ballmer, according to his company bio, “developing and managing strategic relationships, mergers, acquisitions and investment partnerships with media, consumer electronics, telecommunications, software and Internet companies.”

In that role, Vigil has worked on a range of deals, including with Facebook, Nokia, News Corp. and many others.

Previously, he worked on Microsoft’s digital TV strategy, including the acquisition of WebTV. Vigil also did marketing and business strategy for Office, Word and Excel.

In other words, Vigil knows where all the bodies are buried up at Microsoft’s Redmond HQ! And, presumably, he’ll be keeping that to himself.

Here’s the internal email from Ballmer about Vigil’s departure:

After 25 years at Microsoft, Hank Vigil has decided it’s time to open a new chapter in his life.

Hank has covered a lot of ground, from launching Excel 3 and Office 95, to our early investments in ITV, to helping restructure our relationships with Sun, Time Warner, and Real Networks, to his more recent work helping to drive new investments and partnerships with companies like Yahoo!, Facebook, and Nokia. He’s been a critical strategic advisor and bridge-builder on some of the biggest industry opportunities we’ve dealt with in recent years.

He’ll be staying on until the fall, then he intends to do some early stage investing and advising start-up companies.

While Hank is leaving the company, he’s not going too far. I’m pleased to say that Hank will continue to provide his industry insight and strategic counsel going forward as an advisor to the company.

Please join me in congratulating Hank on a quarter-century of great work, and wishing him the best of luck in his new adventure.

Before renewing the product for another season, though, Google is making a number of changes to the script. In addition to trying to make it more approachable, the company is hoping to change the way Google TV is thought of in the market. Initially, many people saw the product as a potential way to get around the big TV providers by using Web-based services. However, Hulu and other mainstream Web video services quickly blocked access via Google TV.

This time around, Google TV will be pitched more clearly as something that can add to a traditional TV experience, both through a wave of new applications and by delivering video that even the broadest satellite or cable package doesn’t have.

Google TV debuted last year as an option on certain Sony TVs and Blu-Ray players as well as via a set-top box from Logitech. However, it was met with disappointing sales and lackluster reviews. Logitech, for example, said it sold just $5 million worth of Google TV products last quarter, far less than it was expecting.

But Google sees the marriage of Internet and the television as in its early days. And it imagines the first version of Google TV not unlike the G1, the first Android phone. While the phone offered hints at what Google’s phone would eventually become, it was itself not much to look at and more than a little clunky. Over time, of course, Android became a major force in the smartphone business.

The first glimmers of the new TV will come next week at the Google I/O conference, where Google will present a session for developers on creating TV-friendly Android apps. However, the next version of Google TV and the TV-centric version of the Android Market won’t be announced until some time in the coming months, according to sources familiar with the matter.

The goal, sources said, is to have a new version of Google TV ready at least in time for this year’s holiday season. The company is bringing on additional hardware partners, including Samsung and Vizio. Business Insider reported that new hardware will be based on faster chips, although sources told Mobilized that existing Google TV models should also be upgradeable to the new software.

Google is not alone in chasing this Internet-centered view of TV, however. Apple has made the latest version of Apple TV based on Apple’s iOS. Although today’s version doesn’t support running third-party apps, the company has certainly laid the groundwork architecturally to head in that direction. Microsoft, meanwhile, is attacking the living room both by adding entertainment features to its Xbox 360 and by making its Mediaroom IPTV platform more app friendly.

Nor is this the first go-around at this. The dream of marrying TV and the Internet has been around since before the dot-com bubble with companies like WebTV and Wink all chasing the goal of bringing interactivity to the television.

While everyone is considering whether to brine or deep-fry the turkey this week, All Things Digital HQ will be busy with our preparations for D: Dive Into Mobile.

That includes setting the program, which takes place in two weeks and will open with an evening interview with Google’s Andy Rubin (pictured here).

As the search giant’s mobile chief and principal force and creator of its Android operating system, Rubin is responsible for the ongoing development of the major rival to the Apple iPhone.

Many have challenged Android, including a recent jab from Apple CEO Steve Jobs, questioning its overall experience and whether or not it’s actually open.

Nonetheless, Rubin and Android have proven to be a disruptive and fast-growing force in the mobile space, aiming for dominance akin to Microsoft’s on the desktop.

Ironic? Yes.

Rubin started as an engineer at Apple and later worked at General Magic, where he participated in developing Magic Cap, an operating system and interface for handheld devices. When Magic Cap failed, Rubin joined Artemis Research, founded by Steve Perlman, which became WebTV and was eventually acquired by Microsoft.

After several years, Rubin left to found another smartphone effort called Danger, which was also acquired by Microsoft, in 2008.

Disillusionment with his ouster as CEO of Danger motivated him to found Android, which was later acquired by Google.

Now, it seems Rubin is poised to make good on his first efforts at making a truly smart smartphone ubiquitous.

And he is only one of many of the industry heavyweight speakers at D: Dive Into Mobile, among them: Dan Hesse, president and CEO of Sprint Nextel; Mike Lazaridis, co-CEO of Research in Motion; Mike McCue, CEO of Flipboard; Joe Belfiore, vice president of Windows Phone Program Management at Microsoft; Jon Rubinstein of Palm, now owned by Hewlett-Packard; Foursquare CEO and co-founder Dennis Crowley; Google advertising czar Susan Wojcicki; and Glenn Lurie, president of Emerging Devices for AT&T.

Plus, there is also one more big speaker we’ll be announcing soon, so stay tuned.

D: Dive Into Mobile will be held at the Ritz-Carlton in San Francisco on December 6 and 7.

It represents the very first brand extension of our flagship D: All Things Digital conference, now in its ninth year of grilling the big names in tech and media to sold-out analog audiences and scores more on the Web.

And, as always, there will be no PowerPoints, no panels and definitely no pontificating. What there will be are unrehearsed, unscripted and unexpected interviews, where real news is often broken.

But, unlike big D, D: Dive Into Mobile is topic-focused, drilling down deeply into the ubiquity of mobile technology and devices, and its implications for brands, organizations and consumers worldwide.

Along with Walt Mossberg and me, Mossberg Solution’s Katherine Boehret and MediaMemo’s Peter Kafka will be conducting the interviews.

As usual, we’ll be liveblogging the whole thing and also posting highlight videos.

But there’s nothing like being there, so you can sign up for the D: Dive Into Mobile conference here.

There was this from Google Senior Product Manager Rishi Chandra: “We’re going to have the same impact on the TV experience that the smartphone had on the phone experience.”

And then this from Google CEO Eric Schmidt: “TV has not been reinvented in any significant way since color television was brought in in the mid-1960s.”

With Google TV, Google clearly believes it is ushering in the rebirth of television. But, to Schmidt’s point, sure, TV hasn’t been reinvented in 50 years, but not for lack of trying.

The evolutionary path of the device is littered with failed Internet-TV initiatives. As the Time Magazine cover from Apr. 12, 1993 suggests, this is not a new idea. Nor has it been a successful one, at least not in implementations to date.

Steve Perlman’s WebTV, one the earliest products to bring the Internet to television, failed to gain significant market traction and didn’t do much better after it was acquired by Microsoft (MSFT) and turned it into MSNTV.

AOL TV, America Online’s (AOL) effort to extend its dominance from the PC to the television with a Web-TV hybrid, was scuttled in 2003, three years after it launched.

Brought to market with the help of some impressive hardware partners, like Hewlett-Packard (HPQ), Microsoft’s Media Center Extenders never really caught on.

Launched more recently, Yahoo’s (YHOO) Connected TV initiative hasn’t garnered much notice. Then there’s Kodak’s (EK) Theater HD Player, which doesn’t seem to be doing that well either.

So what makes Google (GOOG) think it’s going to succeed where so many have failed? Particularly with a platform that, frankly, looks a lot like TiVo (TIVO) with a Web browser?

Aside from arrogance, that is?

Well, there’s an impressive list of partners. Certainly, adoption of Google TV stands to benefit quite a bit from Sony (SNE), Logitech (LOGI) and Dish Network (DISH) baking it into television sets, Blu-ray players and set-top boxes. And sources tell me other electronics manufacturers will soon join them. Content partnerships with Netflix (NFLX) and Amazon (AMZN) will also help.

But the partnerships that matter most with an effort like this–cable company partnerships–are entirely absent. The simple fact is that cable companies like Comcast (CMCSA) and Time Warner (TWX) not only distribute the majority of the set-top boxes in the U.S, they also have a strong hold over content providers. Unless Google can convince them that their current business model is in need of something like Google TV, pushing the platform into the mainstream is likely to prove quite difficult.

[Image Credit: Time Magazine]

Intel (INTC) CEO Paul Otellini said that last week, hinting at the announcement Google (GOOG) made just moments ago: A new software platform for set-top boxes and televisions that promises to marry broadcast TV with the Internet. Its name: Google TV. Its tagline: “TV meets Web. Web Meets TV.”

Announced at this morning’s Google I/O event, Google TV’s purpose is, in the words of Senior Product Manager Rishi Chandra, “to bring the entire Web to the television set…to take the best of what TV offers these days and the best of what the Web offers and combine them.”

Anyone remember WebTV?

With Google TV, the aim is to rethink the navigation of TV and make it more like the Web. “The Web has a very simple and elegant model for finding information: A search box,” Chandra said. “We want to give you that same experience with television.”

To do that, Google (GOOG) has extended the breadth of its search to TV programming. The platform’s “quick search box” returns results from the Web, as well as TV listings. These include programs available for purchase on sites like Amazon (AMZN) and Netflix (NFLX)–both partners in this effort, apparently.

Says Chandra: “To a user it doesn’t really matter where I get my favorite content, whether it be live TV, DVR or the Web. We just want easy access….Google TV makes the Web a natural extension of the TV itself….It’s just as easy to go to any site on the Web as it is to go to any channel on your television.”

And to Web-based advertising as well, of course. Remember there are some four billion TV users worldwide.

“Many times I see and interesting ad, but I can’t do anything with it,” says Chandra. “But advertisers have Web sites and with picture-in-picture functionality, I can now click on an ad and see them….Now every ad on TV has the potential to become interactive.”

And presumably, there’s potential here for Google to make a small profit from each of them.

So how will all of this work? Google TV’s software is built on Android 2.1 and uses Google Chrome as its browser. Because of this, Android smartphones can be used as remotes and Android applications can actually be used on televisions running the platform–something some observers have been encouraging Apple to do with AppleTV for years. Google’s Android Marketplace will be accessible via Google TV.

On the hardware side, there will be Google TV set-top boxes, TV sets, and Blu-ray players. Sony (SNE) is developing a full line of integrated TVs and a Blu-Ray player as well. Logitech (LOGI) is producing a set-top box. And Intel (INTC) is providing Atom chips for all of them. We should begin seeing Google TV devices at Best Buy (BBY) this fall.

“We’re coming to market soon and we’re coming in a big way,” says Chandra.”…Our goal is to have the same impact on the TV experience that the smartphone had on the phone experience.”

Longtime Silicon Valley entrepreneur Steve Perlman has been ferreting away on a new cloud gaming service called OnLive for a while now.

Finally, it’s got a due date to go live–June 17 at the E3 conference in Los Angeles.

As in OnLive will be live, but it’s not live yet.

Get it?

Perlman announced the launch of the potentially innovative service, which plans to offer high-quality games on any computer or smartphone without a dedicated console unit, in a keynote at the Game Developers Conference in San Francisco today.

It will include 3-D, since all the rendering is done in the cloud and brought down via streaming to OnLive’s software.

Whether it will be twitchy enough for the ADHD set of gamers is the big question.

In any case, OnLive will cost almost $15 a month as a service, with game prices on top of that. Movies and other community or social networking features are also presumably possible.

I will be talking to the always entertaining Perlman–creator of WebTV and more–later this week about it all.

Until then, here’s the press release:

OnLive to Launch Consumer Game Service on June 17, 2010

US Rollout of First Cloud Gaming Service to Begin During E3 2010 in Los Angeles;

Launch Titles, Pricing Plans and Early Registration Program Announced at GDC 2010

San Francisco, CA–March 10, 2010–OnLive, Inc., the pioneer of on-demand, instant-play video games, today announced that the PC and Mac® versions of its game service will begin rolling out to consumers on June 17, 2010 during the E3 2010 show. The OnLive® Game Service is a revolutionary, on-demand video game platform capable of delivering the latest and most advanced games instantly via a broadband connection on virtually any PC or Mac, via a small browser plug-in, or on an HDTV, via OnLive’s MicroConsole™ TV Adapter. The OnLive Game Service enables an entirely new way to discover, explore, purchase and experience video game content. Additionally, the game service offers instant access to purchase or rent new release games on an à la carte basis from many of the world’s leading publishers including Electronic Arts, Ubisoft®, 2K Games, THQ and Warner Bros. Interactive Entertainment.

“This marks a huge milestone for both OnLive and the interactive entertainment landscape as a whole, changing the way that video games are developed, marketed, accessed and played,” said Steve Perlman, Founder and CEO of OnLive. “We are opening the door to incredible experiences for gamers and enormous opportunities for developers and publishers.”

Starting on June 17, 2010, the OnLive Game Service will be available to early registrants throughout the 48 contiguous United States. The initial offering will be supported by a $14.95 monthly service fee, which will provide access to an ever-increasing library of high-end, new-release, instant-play game content without the need to purchase expensive PC gaming or console systems.

Loyalty programs, such as multi-month pricing, and special offers will be announced by the start of E3. For starters, OnLive is announcing an exclusive, pre-registration offer, wherein the first 25,000 qualified registrants will have their OnLive service fee waived for the first three months. For important details regarding the OnLive Pre-registration special offer visit www.onlive.com/special1.

The OnLive Game Service will include standard online game service features such as gamer tags, user profiles, friends, and chat. In addition, an evolving slate of OnLive-exclusive features will include state-of-the-art 3D graphics performance; instant-play free game demos; multiplayer across PC, Mac and TV platforms; Brag Clips™ video capture and posting; massive spectating; always-updated games; cloud-saved games–pause and instantly resume from anywhere, even on a different platform; and much more. Individual game titles will be available for purchase or rental on an à la carte basis, with specific game pricing announced prior to the consumer launch event at E3.

“The OnLive Game Service creates a new opportunity for consumers to play the latest games without spending hundreds of dollars on a hardware system to make it happen,” said Mike McGarvey, COO of OnLive. “As a Mac user myself, I’m excited about the opportunity to help bring high-end gaming to this new and significant market.”

OnLive also confirmed ongoing platform support from the world’s largest and most influential game publishers. While launch titles will be announced prior to E3 in Los Angeles, a few of the anticipated games include Mass Effect 2™, Dragon Age Origins™, Assassin’s Creed® II, Prince of Persia The Forgotten Sands™, Borderlands™ and Metro 2033™. OnLive will soon be announcing the availability of its MicroConsole TV Adapter which will bring the OnLive Game Service directly to consumers’ television sets for the first time. An announcement about expected availability will be made later in the year.

OnLive’s digital distribution model, instant-play capability and revolutionary video compression technology offers gamers of all skill levels the ability to experience the newest, most advanced, always-updated games with no downloading, no hardware upgrades, and virtually instant response time. As a result, consumers can enjoy more games more rapidly and with lower overall up-front investment than ever before.

The frustrating thing about WebTV was that the dialup connection was so slow–at times crippling–that you often sat on the couch waiting minutes for a page to load. Plus, the resolution on TVs then was far from hi-res, and the lack of multimedia on the Web made the task rather boring.

Fast forward more than a decade: While you can now search the Web at lightning speed on the tube, watch television shows online at will and view Internet videos with clarity on any screen, companies are still struggling to come up with a business model for the Internet-connected television market.

Read the rest of this post on the original site

Later today, Perlman–former principal scientist at Apple (AAPL) and the founder of WebTV–will officially unveil OnLive, the online service with which he hopes to upend the $46 billion world-wide videogame market. Seven years in the making, OnLive promises to create an on-demand gaming experience that rivals those offered by dedicated videogame consoles. It’s capable of streaming even the most advanced, CPU-intensive games to television and computer–Macintosh or PC–without lag or a reduction in quality. “We’re providing you with the latest high-end titles, the exact same ones you would see at Target or Best Buy, in the same release windows,” Perlman told USA Today. “But what is really cool is you don’t need any high-end hardware to play them. There’s no physical media. It’s an all-digital platform. You never need to upgrade your equipment at home.”

A compelling proposition. A potentially disruptive one too, if OnLive is able to deliver it with the reliability and ease of use it promises. Said IDC analyst Billy Pidgeon, “It’s a good idea and has potential, but the thing I need reassurance on is being able to deliver this over the network. In games there’s no wiggle room–when you press a button to fire you want to fire,” he said. “But if it works, this could be a disruptive.”

Today, the folks from Hillcrest Labs visited me at my home to show off their latest version of what they call an “operating system for the television,” which they had first shown off as a demo at the D3 in May 2005. The Rockville, Md.-based company is one of many trying to reinvent the television navigation experience, complete with a remote control that is a round, motion-controlled device called the “Loop,” pictured here (and you can also see the pictures and video of the Hillcrest demo at D3 here).

Their visually based navigation system, which swoops in and out like a helicopter, is an attempt to free the consumer from the onerous and frustrating grid system that has used up too many minutes of consumers’ life. The centerpiece is obviously the Loop, which is moved about in the air somewhat like a mouse on a desktop and with only a few buttons and scroll wheel. It is certainly a welcome change from other remotes, most of which require you to have a degree in astrophysics to understand properly. I will be interviewing Hillcrest CEO Dan Simpkins again with others at a panel at the National Cable & Telecommunications Association’s annual show next Monday afternoon in Las Vegas, called “Everything I Need to Know I Learned from the iPod: Defining the Consumer Experience.”

There and in this column, I will be particularly focused on the ongoing issue of making television more interactive. It has been a minor obsession of mine, since I sat in on the pitch meeting the founders of TiVo did before venture capitalists back in 1997. At the time, after a day of sitting through a series of inane dot-com ideas, I was thrilled when this groundbreaking concept of control of the television experience was offered, even if TiVo’s business success has not been as profound.

That feels like an eon and a lot of false starts ago (oh, I had and then didn’t have WebTV). But, perhaps because consumers are finally comfortable watching video on the Web, it seems like the idea of truly incorporating these ideas may have finally come. TiVo has recently unveiled cool new abilities to put personal and Web videos on the television, big players like Apple and Microsoft are deep into the game with major offerings (after years of efforts) and small outfits like Slingbox (which allows you to “sling” content to a myriad of devices) are gaining traction. And, of course, despite the problems with its straps coming undone and minor mayhem following, consumer enthusiasm for the Nintendo Wii system is part of the same trend.

“This is about consumer choice and simplicity,” said Hillcrest’s Simpkins to me today. As it always has been.