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Microsoft’s new Windows 7 operating system is selling quite well, according to CEO Steve Ballmer. In remarks at a press conference in Tokyo Thursday, Ballmer said that Windows 7’s first 10 days at market have been more successful than those of any of its predecessors.

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“We are mostly but not all done” with layoffs. So said Microsoft CEO Steve Ballmer in May at the start of a second round of cuts that claimed the livelihoods of some 3,000 employees. Now, six months later, the company is finishing the job. Sources tell TechFlash that Microsoft will make additional job reductions this week–beginning as early as today.

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BoomTown’s week began onstage in front of thousands of chanting women. No, Kara wasn’t filling in for Oprah; she was doing something much cooler.

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If Barry Diller is looking for somewhere to unload IAC’s Ask.com search engine, he’d be wise to consider Microsoft–if he doesn’t have that in mind already. Analysts reflecting on Diller’s recent remarks about Ask’s “speculative future” say Microsoft is the most likely buyer if IAC is truly serious about dumping the little search engine that couldn’t.

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Microsoft may have gotten the jump on Google when its Bing search engine became the first to allow users to search Twitter in real time, but that victory is largely an empty one. Because while being first is generating quite a bit of attention for Bing–which is, for once, leading search innovation instead of following Google’s–that’s about all it’s good for now.

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So much for Xbox 360’s game console exclusivity on Netflix streaming. This morning, the DVD-by-mail pioneer said that beginning sometime next month, owners of Sony’s PlayStation 3 game consoles will be able to stream movies and TV shows from Netflix.

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We knew it had to happen. There was no way the great white (and blue, and whatever color Yahoo is) search engine sharks could resist the fire hoses full of text chum Twitter produces 24/7. Heck, Twitter even chops its textual fish heads into lovely bite-sized chunks.

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What a nice way to top off an already big week.

Posting first-quarter financials before market opening this morning, Microsoft said it earned 40 cents a share on revenue of $12.92 billion, besting analyst estimates that had called for a profit of 32 cents a share and revenue of $12.4 billion.

Nonetheless, the software giant still saw both profits and revenue decline for the third quarter in a row.

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“I’m Steve Ballmer, and I’m a Windows 7 PC.” With those words, spoken at a big company event in New York City, the Microsoft CEO launched the newest version of Windows, the one he hopes will regain the customer goodwill lost with its predecessor, Vista.

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Microsoft’s first brick-and-mortar retail store isn’t scheduled to open for another few hours, but the software giant is already selling PC hardware and third-party software titles–on the Web. This morning it unveiled an expanded online store that will better reflect its new real-world counterpart.

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