According to Bloomberg, Microsoft Corporation (NASDAQ:MSFT) will be finishing up Windows 8 this summer. The actual software will be running on PCs and tablets by October.

The new Windows will have two separate entities. There will be a Windows 8 for traditional PCs and tablets and there will also be a Windows on ARM for consumer tablets.

Analysts are expecting that Microsoft will be trying to launch at a similar timeframe as the Windows 7, right around October just when holiday shopping is beginning to ramp up. Conversely, Microsoft is trying to avoid a Vista redo which resulted in missing the holiday season and delayed until January. After all that, the operating system was not that good anyways.

Although Microsoft has not yet officially disclosed when the releasing of the new operating system will be but the company has hinted that it will be this year. Windows 7 was released three years ago which makes it likely that the new system will come out this year.

Overall analysts are saying that Windows 8 is going to be a make or break for Microsoft. Microsoft is falling further and further behind Apple and there needs to be some big time decision making to get the firm back on track.

Right now Microsoft is in a very unpleasant spot. Apple is setting records with the popular iPad, yet Microsoft has not responded with anything at all to counter the iPad. It almost seems as if Apple Inc. (NASDAQ:AAPL) is extending the gap daily and with the speculation that the company could be coming out with some sort of iTV device, what is Microsoft going to do.

Unfortunately, it almost seems as if there is more anti-Windows 8 sentiment than positive. The reason being is when Microsoft launched the Consumer Preview version of the Windows 8, there were a lot of issues with the system.

There were issues with connecting wireless keyboards and other devices as well as multiple bugs in the software. This has made analysts not only less optimistic on the software but they also now believe that an October release date is a little bit unreasonable. With a less than impressive start, can Windows 8 propel Microsoft back into the running?

The way that I see it and the way that things are being perceived right now is that Microsoft is beginning to get out of touch with the consumer. Rivals Google and Apple have their own phones and tablets while Microsoft has only the poor performing Windows phone. The bottom line here is that Microsoft is in a position to fall behind competitors and some worry that it may never be able to catch up again.