Created in conjunction with Intel, this sign run an Intel Core i7 processor and Windows Embedded Standard 2011, the next release of Windows Embedded which is based on Windows 7. The sign, like the one in the movie, senses when people come near the screen and it can recommend products for you to buy. However, unlike the sign in the movie, it doesn’t actually identify you by name (whew! That was a little freaky), but it does recognize your gender and height. You can also touch the screen itself or wave your hand in front of it to interact with the software and see the ads being offered, view a store map, access coupons and send them to your phone, and more.

To see the sign in action, check out this YouTube video here.  

This data will be of great benefit to Xbox advertisers who want to know if their ads are reaching the right people at the right time. And it’s only the beginning, notes the Microsoft Advertising blog. The game show only runs for 14 weeks, but Microsoft will continue collaborating with Nielsen to measure other Xbox LIVE media in the future including TV, video, and social media.

Instead of commercials, there will be Windows-branded programming throughout the show, but there are no details yet on what that will involve. The special will be a part of an “all MacFarlane” night on FOX, but it will be the only program sponsored in this way.

On Tuesday, June 22nd at the Cannes Lions International Advertising Festival 2009, Microsoft announced it will bring Interactive Advertising Bureau (IAB) recognized rich media technologies including Silverlight to Xbox LIVE within the next year.  By extending support to technologies like Silverlight, Xbox LIVE will offer advertisers and creative designers scale and reach with their campaign creative assets, enabling them to build and deliver interactive, interconnected experiences that are unlike anything else on television, and extend these experiences across multiple screens – the TV, the PC, and Mobile.

The Microsoft ad that aired was not as harrowing as those VW ones, though, thank goodness. Instead, it was pleasantly goofy. Jerry Seinfeld spots Bill Gates buying shoes at a shoe carnival and goes into to help him out. Bill comes across as a lovable geek – and be sure to catch his Shoe Carnival card for a hilarious photo. But don’t leave it up to me to summarize. You can watch it now.

David Kaplan of paidContent.org chimed in early, echoing the NY Post article, as well as reminding everyone of Jerry Yang’s avoidance of Microsoft products, and how much an acquisition could close the gap between Microsoft and Google. Reuters also covered the story with this choice quote from Peter Lobravico of Wall Street Access: “You can’t find a stronger buyer than Microsoft and while it would spur a lot of political and regulatory noise, everyone knows in the end that the deal would go through.”

Scott Beale picked the right graphic for Laughing Squid’s coverage, and also highlighted the 18 point jump in Yahoo’s stock on news of the negotiations. He also pointed out Eric Schonfeld’s post at The Next Net, which notes that the deal would have an air of desperation, and that, “The culture-clash of two companies could undermine any financial gains a Microsoft-Yahoo merger could produce.” Some astute opinion came from Henry Blodget at Internet Outisder, who recommends the two companies join, and then for Microsoft to spin off a Yahoo-MSN organization.

This questions raised by this morning’s news are far more interesting than the coverage of it, given that very little has actually transpired. So what are the questions then? What are your wildest fantasies about how a Microhoo/Yahsoft would exist, and what sort of combinations could make the new company insanely great?