The cheaper price represents a major shift for Microsoft, as does a decision to drop the $60 annual fee to access streaming content such as Netflix and YouTube.
The update has been seeded to developers, but has yet to be made available to the public.
The company's results got a pick-me-up from an after-tax gain stemming from adjustments to its pension and benefit plans.
Google is spending £1.9bn to snap up Nest, a company that connects your home to the Internet.
Les Moonves suggests Amazon paid $700,000 per episode to his broadcast network for the right to stream the Stephen King sci-fi drama four days after broadcast, a first-of-its-kind deal.
The iPad Air, Apple's fifth-generation iPad, weighs just 1 pound, is 7.5mm thick and boasts its new A7 processor, making it eight times faster than the iPad 4.
The electronics retailer will offer the minimum credit for all working iPads and iPad Minis released after the iPad 2.
Apple's Phil Schiller reveals the iPad Air with Retina Display. The new tablet is 7.5mm thick and weighs just 1 pound. It will be available November 1 starting at $499 for the 16GB model and $629 for the cellular version.
Oppo's latest smartphone brings hardware innovations to a new Android 4.2 phablet.
The Sony Xperia Z1 will cost AU$779 outright, and will be available for pre-order through the Sony website on 9 September.