No, you didn't misread the headline. Microsoft is now in a different softwear business.
What gender are these bags for? The latter one kind of looks like a purse since there's nothing to compare the size to.
i want to say gender agnostic but my thinking is definitely more female oriented
Missed this a while back. Found it up on Steve's blog and then here http://www.shinyshiny.tv/2007/02/microsofts_new.html