It promised that it will deliver a better experience for users when it arrives sometime late next year.
Windows 7 follows Vista, which Microsoft claims has been a success, but which has been subject to fierce criticism from a number of users.
The system was demonstrated at the company's Professional Developers Conference in Los Angeles.
Senior vice-president Steven Sinofsky described it as an "exciting new version of Windows" and claimed it would deliver a more personalised experience.
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