It has been a turbulent year for technology companies, leading to a slowdown in research and development. Unfortunately, this will affect the time to market and new product launches for years to come. Nevertheless, the global economy is on the rebound, and we end the year on a happier note than when we started.

Here are the top ten technology stories of the year, in a non-specific order:

Intel Cancels Retail Larrabee

Intel has been talking about its reentry into the discrete GPU market for the last couple of years. Massive improvements in visual quality and performance were promised, but ultimately even the world's largest semiconductor company was unable to keep up with ATI's GPU development team. The first generation is cancelled, but Intel has promised that its second generation Larrabee card will be better when it hits the market in 2011. Time will tell...


The Transition to 64-bit Software

The hardware has been there for years, but 2009 was the tipping point. Most sales and installations of Microsoft's operating systems are now 64-bit, and software companies have been quick to adapt. Antiviral and firewall software were quickest to change, but the absence of a 64-bit version of Adobe's Flash software is holding back 64-bit versions of Internet Explorer and Mozilla's Firefox.


NAND Flash Memory/34nm Node

Margins on NAND flash memory had been razor thin, so NAND manufacturers had shut down their inefficient 200mm wafer fabs early in anticipation of cost-efficient volume from 34nm fabs. The demand for NAND flash memory grew faster than was anticipated this year, and the result was a doubling in prices. Nevertheless, the transition to 34nm by the industry is now in full swing, and mass production in volume has been ongoing for some time. An additional upside is that DDR3 and GDDR5 DRAM is starting to move to the 40nm node as capacity frees up.


Netbooks

The market for small, affordable computers with abundant battery life exploded this year. It would've been even larger if we weren't in a recession, but almost 40 million units sold and a doubling in sales over 2008 is still pretty darn good in a bleak PC market. Next generation Pine Trail systems look even more promising, with longer battery life and lower prices for consumers.


Microsoft Bans Over 1 Million Xbox 360 Consoles

Microsoft cracked down hard on modified Xbox 360 consoles this year due to piracy concerns. While public opinion is divided, over a million consoles are now limited in their functionality. Offline games can still be played, but hard drive game installations and access to Xbox Live were cut off. Microsoft suggested customers with a banned Xbox 360 buy a new one. Some angry customers drove up sales of Sony's PlayStation 3 console instead.


Intel's Antitrust Troubles

Intel is no stranger to antitrust troubles, but this year was spectacular. The company was hit hard by a $1.45 billion fine from the European Commission, and sued earlier this month by the US Federal Trade Commission. This is all supposed to end up helping consumers, but Intel will still wield monopolistic power for the short-term.

ATI's GPU Domination/DirectX 11

The graphics division of AMD released five new DirectX 11 graphics cards this year, including the most powerful graphics card in the world. It also launched an overclocked Radeon HD 4890 and the 40nm Radeon HD 4700 series. Demand has been very high, and the company has been grappling with orders even as it has increased production from TSMC. The situation improved in December, and cards are available, but don't expect any price cuts for a couple of months.

Solid State Drives

The fast access speeds of SSDs intrigued most enthusiasts this year, as it became the most cost-effective method of increasing the performance of a computer. Capacities and speeds hit new highs, and OEMs responded to consumer demand by making them available as options in netbooks, notebooks, and desktop computers.

Intel introduced the first 34nm SSD with its second generation X25-M, and prices have been kept in check as 34nm capacity from IMFT, Samsung, and Toshiba has come online. 30GB SSDs with decent flash controllers hit the $100 mark (with a mail-in rebate) during the holiday shopping season, heralding a move to the mainstream.


Windows 7

Microsoft's new operating system replaced Windows Vista, the OS that everyone loves to hate. Features like support for DirectX 11 and faster performance drove Vista users to upgrade, and even motivated die-hard Windows XP fans to make the leap to a 64-bit version with greater memory support.

The corporate move to Windows 7 will take longer, as most companies will take the opportunity to transition to 64-bit software at the same time.


Intel Pays Off AMD

Intel went from threatening to shut down AMD's CPU production to paying their chief competitor $1.25 billion to settle all antitrust disputes. A new five-year patent cross-licensing agreement was signed, and GlobalFoundries was able to continue production without any hiccups.

Things haven't turned out the way Intel has hoped though, as it continues to appeal the EC's antitrust decision and has to face a new lawsuit from the FTC. Meanwhile, AMD's stock has gone from $2 earlier this year to $10.

The payoff will hopefully result in an accelerated CPU roadmap from AMD, but for the short-term Intel will hold the technology lead as it prepares for the introduction of its first 32nm CPUs.