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Intel CEO Paul Otellini: Microsoft Windows 8 OS is being released before it’s fully ready [Update: Intel denies]

This cannot be good.

Intel Corp. (INTC) Chief Executive Officer Paul Otellini told employees in Taiwan that Microsoft Corp.’s Windows 8 operating system is being released before it’s fully ready, a person who attended the company event said. Improvements still need to be made to the software, Otellini told employees at a company meeting in Taipei today,

If anyone should know, it is Otellini. He is also on Google’s Board of Directors, and he might be feeling some of the sting from the ARM-based Windows RT. Still: Ouch.

Many believe Microsoft’s Windows 8 strategy is reactionary and being dictated by the success of the iPad.

Update: Intel denied in a press release this afternoon the statements:

Intel has a long and successful heritage working with Microsoft on the release of Windows platforms, delivering devices that provide exciting experiences, stunning performance, and superior compatibility. Intel fully expects this to continue with Windows 8.

Full PR below: