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I was just at the keynote in NYC. I didn't hear them mention anything about allowing you to edit files in the browser. The only thing I saw demonstrated was preview of documents with comments collaboration but no create/update functionality. It felt like a read-only version of Google docs with commenting.

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They said they store different versions, so I assume you can edit word docs. But they didn't explicitly demonstrate that.

Doesn't seem like one follows the other and having a full editing of Word docs seems unlikely given the complexity of the format.

My guess is that the 'different versions' is just that, if you save a new version then they save that away, not that you get to edit online.

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