The OS is commonly used in set-top boxes, GPS (global positioning system) devices, PDAs, industrial automation and medical equipment. Products with the new OS are expected next year.
Microsoft said it has redesigned the heart of the OS, the kernel, and expanded the capacity for simultaneous processes from 32 to 32,000.
This means developers can incorporate large numbers of complex applications into devices and offer advanced multimedia and Web services. Windows CE 6 does include features from older iterations of Windows CE, allowing device makers to keep previous investments in user interfaces, applications, middleware and drivers.
Microsoft also introduced an embedded development environment available via a plug-in for Visual Studio 2005. The move will encourage some seven million Visual Studio developers worldwide to program for embedded devices, the company said.
As part of Microsoft's moves to counter open-source rivals like Linux in the embedded space, developers can also access millions of lines of Windows CE source code under Microsoft's Shared Source Initiative.
Developers and device makers have the right to modify and distribute custom components with their Windows CE-based products. The licence includes a flexible template that lets device makers create customised user interfaces to further differentiate their devices.
During its fiscal third quarter that ended 31 March, Microsoft's revenue from the mobile and embedded business rose 46 percent to $89m, compared with $61m a year earlier. However, this market segment is still a tiny fraction of Redmond's total revenue, which was $10.9bn in the same quarter.
Aaron Tan of ZDNet Asia reported from Singapore.
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