Last month, he told BBC news the company is "obviously" aiming to "do more hardware", but further plans were outlined this week at a trade event in California.
According to Reuters, Microsoft is keen to become a provider of cloud-based services as well as more traditional products.
"It is absolutely clear that there is an innovation opportunity on the scene between hardware and software and that is a scene that must not go unexploited at all by Microsoft," Mr Ballmer commented.
Speculation is now rife that the company's next tablet could be released as early as January 2013.
The first, called Surface, hit shops in late October and Mr Ballmer told Le Parisien it has been selling "modestly" across Europe.
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Posted by Nikki Barrister
Source: The Sales Engineer News