TV bosses in America have failed to see the funny side after controversial jokes in an upcoming Family Guy variety special prompted computer giant Microsoft to pull out of a sponsorship deal.

Family Guy Presents: Seth and Alex's Almost Live Comedy Show was due to air in the U.S. without ad breaks as part of a marketing campaign for Microsoft's new Windows 7 system.

But executives were not impressed by the risque gags made by creator Seth MacFarlane and co-star Alex Borstein at the special's taping on 16 October - and they've decided to pull out as a result.

The duo joked about deaf people, the Holocaust, incest and feminine hygiene, according to Daily Variety.

A Microsoft spokesperson says, "We initially chose to participate in the Seth and Alex variety show based on the audience composition and creative humour of Family Guy, but after reviewing an early version of the variety show, it became clear that the content was not a fit with the Windows brand.

"We continue to have a good partnership with Fox, Seth MacFarlane and Alex Borstein and are working with them in other areas. We continue to believe in the value of brand integrations and partnerships between brands, media companies and talent."

The variety show is still scheduled to air on 8 November with an unknown sponsor.