Microsoft hopes to expand its computing empire by developing a new generation of Internet-based software and services. The new initiative is the driving force behind Microsoft chief executive.

Bill Gates_ decision to step aside Thursday and let president Steve Ballmer take the helm. Gates will remain as chairman but take on the new role of chief software architect. Microsoft executives say the firm_s strategy, called the Next Generation Windows Services (NGWS), will bundle a mix of existing and new Microsoft software. The goal is to give people a new Web-based computing experience as Internet- enabled wireless devices, such as cell phones and personal digital assistants, become more popular. "We believe the PC will continue to be the most powerful creativity piece available to people," Ballmer said during a press conference Thursday. "But we also need to ensure that non-PC devices can leverage this next-generation set of services."