Microsoft’s big secret turns out to be a web-enabled coffee table:

Microsoft Corp. has chosen what it sees as the next-generation in PC form factors — a computer the size and shape of a coffee table with a flat, touchscreen display — as the third major product it has designed and is branding for the consumer electronics market.

On Wednesday, the company revealed five-year old project “Milan,” a computer that uses wireless autosync and touchscreen technology to allow users and devices to interact with files and applications using a flat, table-top screen. The company designed and is branding the computer, as it did with consumer electronics products like the Xbox game console and Zune MP3 player.

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As demonstrated by Thompson and his team, Milan needs no wires to sync up with devices and users don’t need a mouse to communicate with it. By placing hands on a 30-inch horizontal display, users can move around photos or videos, and even flip them over or display them from different angles. Bluetooth-enabled devices such as mobile phones, wireless cameras and Microsoft’s Zune also can communicate directly with Milan simply by being placed on the screen. Applications will automatically launch and open the correct file library — such as music or photos — depending on the device.

Ok, it sounds innovative — lots of geek points. But will it change the world? Not anytime soon. Pricing will be $5,000 to $10,000 per unit, and the new systems will mostly be used in kiosks. It’s hard to get too excited about kiosks. And I’m not sure about a horizontal screen you have to look down at.

Here’s more Microsoft Surface news.

And the obligatory image: