CARLSBAD, Calif.- Microsoft Corp. Thursday unveiled a major overhaul to its Internet search engine, as it enters a new chapter in its rivalry with Google Inc.

Microsoft is rebranding its search engine, currently called Live Search, as Bing as part of a range of steps to make its search technology more appealing to consumers. The Bing search service will be available starting June 3.

Asked about the new name, Microsoft Chief Executive Steve Ballmer said, “we needed a name that says this is all about search.”

The new search engine, being demonstrated by Ballmer at the D: All Things Digital conference hosted by The Wall Street Journal, looks different from its predecessor and rivals’ search engines, with related search terms displayed on the left hand side of the Web page.

It also allows users to access a range of categories of search, which Microsoft hopes will give consumers more search options. Microsoft has targeted four distinct categories of search: shopping, local, travel and health. Each search will prompt a more detailed range of search options.

Some searches–especially ones for celebrities or travel destinations–yield a bunch of links to help narrow results into categories. For pro athletes, it might offer links for statistics and highlights. For Thailand, categories include weather and real estate. For video searches, the results are shown in thumbnails that play in the search pane when clicked.

Microsoft currently takes less than 10 percent of Internet searches and has struggled for years to compete with Google, which does more than 60% of Internet searches, in the largest and most lucrative area of Internet advertising. Microsoft’s struggles were largely the motivation behind the company’s pursuit last year of Yahoo Inc.

The Bing search engine, which goes online next week, focus on making search more efficient for the customer, said Adam Sohn, a Microsoft digital media specialist. Although Sohn conceded that the changes to the search engine wouldn’t likely increase Microsoft’s market share rapidly, he said the new categories could help advertisers reach consumers more efficiently.

The launch is the result of several months’ work to overhaul Microsoft’s search technology. Its desire to increase its reach in search was the primary reason Microsoft offered $47.5 billion last year to Yahoo Inc., later withdrawing the offer. Although a full acquisition is likely off the table, the companies continue to discuss options for combining their Internet search businesses.

Speaking Wednesday at the same conference, Yahoo’s Chief Executive Carol Bartz said she remained open to doing a deal with Microsoft for the right amount of money and the appropriate combination of technology.

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