The new technology represents another step in the direction of entirely new interfaces designed to displace conventional PC metaphors or arcane computer instructions with real-world, physical interaction.

In Microsoft Surface, there is no mouse or keyboard. Small groups can sit at the 30-inch table and use it for digital finger painting or for virtual concierge services. Other applications could include ordering a drink by tapping a finger on the table or browsing music selections and then playing a song.

'Multibillion-Dollar Category'

In addition to recognizing finger movements, Microsoft Surface can also identify physical objects that have bar-code-like tags. Microsoft says that when a diner sets down a wine glass, for example, the table can automatically offer additional wine choices tailored to the dinner being eaten. The technology can support more than one touch at a time, which means diners won't have to compete to interact.

CEO Steve Ballmer, who presented the new interface at a Wall Street Journal conference in Carlsbad, California, indicated that he had high hopes for the technology. "We see this as a multibillion-dollar category," he said in a statement, "and we envision a time when surface-computing technologies will be pervasive, from tabletops and counters to the hallway mirror."

Echoing that sentiment, Gartner analyst Jackie Fenn said the technology has huge potential. "It's one of the most significant shifts in the user interface paradigm in quite a while." Fenn pointed out that Microsoft Surface takes advantage of less expensive, larger screens that are now available, as well as Windows Vista capabilities. She also noted that some aspects of the idea have been "around for quite a while."

She predicted that several uses could materialize for Microsoft Surface. These might include meeting-room tables or desktops. "Right now, Microsoft is clearly driving this market," Fenn noted, adding that the company is in the position of being the leader in an innovative, niche market.

Harrah's, Starwood, T-Mobile

The basic portfolio of applications that will be available with initial versions of Microsoft Surface include photos, music, and a virtual concierge.

Harrah's Entertainment's Las Vegas properties -- notably Caesars Palace and the Rio All-Suite Hotel & Casino -- will use the technology so that guests can reserve concert tickets, review restaurant menus, go on virtual nightclub tours, or book spa sessions, all while at the dinner table.

At Starwood Hotels & Resorts Worldwide, Microsoft Surface will help create a "new lobby experience." Guest will be able to listen to music and order food or drinks, paying for them by dropping their credit card on the screen.

T-Mobile USA said it might feature different cell phones on Microsoft Surface so that users can browse features, prices, and phone plans at its retail stores.

The technology will be distributed through International Game Technology, which specializes in computerized gaming machines. Prices will reportedly be $5,000 to $10,000 per unit.