Windows Offered In Scaled-Down Version

Microsoft Corp. stepped off the bigger-is-better treadmill Monday by saying it is ready to sell a smaller version of its Windows operating software for handheld computer devices.

The company said five major companies will make machines that are based on the software. They are Hewlett-Packard Co., NEC Corp., LG Electronics Inc., Casio Computer Co. and Philips Electronics NG.

Their products, expected to go on sale next year for around $500, will compete with existing electronic organizers and tablets like the Apple Newton and Palm Pilot.

Microsoft’s software, called Windows CE, is the company’s first operating program to be slimmer than one of its existing ones. Since it entered the operating system market in 1980 with MS-DOS for the IBM personal computer, Microsoft’s strategy has been to upgrade the software with more features that require more computing power.