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Will the Windows 7 price be right?

By | June 5, 2009, 11:29am PDT

Summary: A confidential memo from giant retailer Best Buy reportedly contains details of an upcoming price promotion for Windows 7. A few months ago, Microsoft promised “aggressive pricing and great deals” on its new OS. So how good a deal can you expect?

[Updated 12:20PM PDT with Microsoft comment.]

Engadget says they’ve unearthed a confidential memo from Best Buy that gives away some pricing information for Windows 7.

According to the memo, Best Buy will kick off its Technology Guarantee program on June 26. Beginning on that date, you’ll be able to buy a PC with Windows Vista Home Premium, Business, or Ultimate and get a coupon good for a free upgrade to Windows 7 when it’s released in October. That matches up with information I’ve heard as well and is consistent with how Microsoft has handled product launches in the past.

The other, more interesting detail is that Best Buy plans to pre-sell select versions of Windows 7 online, for a 16-day period that runs from June 26 through July 11. If the memo is accurate, you’ll be able to buy a Windows 7 Home Premium upgrade package for $49.99 and a Windows 7 Professional upgrade package for $99.99.

Several months ago, Microsoft’s General Manager for Windows, Mike Ybarra, told me that we we can expect “aggressive price points and some very good offers” when Windows 7 is released. This certainly qualifies on both standards. The comparable prices for Windows Vista are $129 and  $199, respectively, and the discounted prices at retailers like Newegg and Amazon typically knock only 10 bucks or so off the sticker. If Microsoft prices Windows 7 in line with Vista, the Best Buy deal represents a discount of 50% on Professional edition and more than 60% on Home Premium. Yeah, that’s aggressive.

Obviously, this limited-time promotion is lower than the average selling price that Windows 7 will command when it’s officially released. But I expect it’s only the first of many deals to come from Microsoft’s retail partners.

What else can we expect to see? Back in early 2007, Microsoft offered a so-called Family Discount for Windows Vista, which allowed anyone with a Vista Ultimate license to purchase two Home Premium upgrades for $49.99 each. I expect to see an improved version of the Family Discount this time around. If Microsoft wanted to aim directly at its archrival Apple, it could sell three Home Premium upgrade licenses (to be used only in a single home) for $199 or less.

Asked to comment on the contents of the Best Buy memo, a Microsoft spokesperson offered the following:

As announced earlier this week, we’re continuing to work with our retail and OEM partners to provide Windows 7 Upgrade Option programs and other offers to consumers interested in experiencing Windows 7, which will be publicly available on October 22nd. We’re excited to share additional details regarding these programs soon, but do not have additional details to announce at this time.

I’ve been told by other sources to expect additional details later this month and will pass them along when I receive them.

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Topics

Best Buy Co. Inc., Microsoft Windows 7, Microsoft Windows Vista, Microsoft Corp., Microsoft Windows, Microsoft Windows Vista (Longhorn), Operating Systems, Software, Ed Bott

Ed Bott is an award-winning technology writer with more than two decades' experience writing for mainstream media outlets and online publications.

Disclosure

Ed Bott

Ed Bott is a freelance technical journalist and book author. All work that Ed does is on a contractual basis.

Since 1994, Ed has written more than 25 books about Microsoft Windows and Office. Along with various co-authors, Ed is completely responsible for the content of the books he writes. As a key part of his contractual relationship with publishers, he gives them permission to print and distribute the content he writes and to pay him a royalty based on the actual sales of those books. Ed's books written prior to fall 2011 have been distributed by Que Publishing (a division of Pearson Education) and by Microsoft Press. As of November 2011, Ed is a partner in the independent publishing company Fair Trade Digital Exchange, which exclusively publishes his books.

On occasion, Ed accepts consulting assignments. In recent years, he has worked as an expert witness in cases where his experience and knowledge of Microsoft and Microsoft Windows have been useful. In each such case, his compensation is on an hourly basis, and he is hired as a witness, not an advocate.

Ed does not own stock or have any other financial interest in Microsoft or any other software company. He owns 500 shares of stock in EMC Corporation, which was purchased before the company's acquisition of VMware. In addition, he owns 350 shares of stock in Intel Corporation, purchased more than two years ago. All stocks are held in retirement accounts for long-term growth.

Ed does not accept gifts from companies he covers. All hardware products he writes about are purchased with his own funds or are review units covered under formal loan agreements and are returned after the review is complete.

Biography

Ed Bott

Ed Bott is an award-winning technology writer with more than two decades' experience writing for mainstream media outlets and online publications. He's served as editor of the U.S. edition of PC Computing and managing editor of PC World; both publications had monthly paid circulation in excess of 1 million during his tenure. He is the author of more than 25 books on Microsoft Windows and Office, including the recently released Windows 7 Inside Out.

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RE: Will the Windows 7 price be right?
FAULKNE 13th Oct
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.
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Contributr
So, what's your ideal price?
Ed Bott Updated - 5th Jun 2009
Sorry, Vista haters, you won't get a free upgrade. But Microsoft has promised aggressive discounts and it looks like they're about to deliver. So what price will you find irresistible for the Home Premium and Professional upgrades? Are the $50 and $100 offers from Best Buy enough to get you to open your wallet?

Leave a reply here.
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?50...
Sleeper Service 5th Jun 2009
...Vista HPx64 to W7 version.

Do that and I'm sold.
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yes, I'll jump on those prices
eggmanbubbagee@... 5th Jun 2009
$100 sounds like a great deal. If I had to pay a lot more than that I'd stick with my perfectly good Vista 64 install for a quite a while - so yes, I think MS is hitting the right price here for existing Windows owners - smart move too - they need to get 7 moving and if they have to take a little profit hit than so be it!

Ignore the mentally challenged idiot spamming this this article, he can't help himself.
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Ideal Price
DannyO_0x98 5th Jun 2009
I have Vista Business Professional running in a virtual machine.

It is likely that I will upgrade. With aggressive pricing, I may go to the
next step up for Win7. But I don't think, even with the nice discount, I'll
pre-buy four months in advance. If the launch goes well, I'll be looking
at the issue for real in early to mid-November.
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$50 will do it
nizuse 5th Jun 2009
The reason for this low amount is that I had to buy an XP last year for a desktop that came preloaded with a non-functional Vista.
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$50 bucks for the Win7 Home Prem is fine to me
visualambrosia 5th Jun 2009
$50 bucks for the Win7 Home Prem is fine to me. I would by four copies for my machines in a heartbeat. This is a good and much needed move for MS to combat the Linux push that is going on.
Yes I like Linux, but I like Win7 more since I need Windows to run all my Adobe CS4 software.
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maybe
jeffk464 7th Jun 2009
Normally I think people should just get their OS when purchasing a system, but for $50 I might just upgrade.
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Homebuilts
merc2dogs` 8th Jun 2009
I've been building my own systems since the 386dx-16 was an impressive system, and the only retail systems I've bought have been used ones for parts.
Much cheaper in the long run (OS and system)to have a retail version of the OS you can use on several builds.
I normally upgrade builds in steps, new mobo and cpu, cpu alone etc, then sell of or trade the old components, My XP has been on 6 or 7 builds, Which brings my 'per install' costs to much lower than the prebuilts.
I would happily buy win7 at $50. (is that an OEM version though?) If the pricing is in the $100 to $200 range I'd buy, Much over that I'll hold off till I find someone with a retail copy for sale cheap.

Ken.
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How much will it REALLY cost?
fr0thy2 6th Jun 2009
Punter goes out and purchases "original" installation media, means unnecessary money spent, which goes to multiply convicted monopolist. Money used to counter and stifle competition. Competition is a fundamental under-pinning of a viable free market.

Lots of unnecessary marketing bumf created. Bad for sustainability.

Punter inserts media into machine. Machine spouts loads of "Enjoy more", "Faster", "Quicker", "More stable", "Increased productivity" style brainwash messaging at punter. The scene is set. Punter is a thicko, or at least being treated as such. Guess that becomes normal for people eventually. Brownstuff baffles brains.

Licence key needs entering. Perhaps a little mental test. Can punter copy the sequence of numbers correctly? Even if punter did, will the machine let punter play? Will Microsoft say "No" as soon as the machine calls home? Is it because of "an error"? Did someone "steal" the use of that sequence of letters and numbers beforehand and punter's gotten a dud, or at least a whole load of time trying to sort the mess out?

Machine eventually finishes initial install. What can punter do? How many of the devices are actually working? No, not used to work on XP but now, on Win7, how many of the devices are actually working? Punter needs device drivers you say? Ok, where are they then? Oh, right, good luck, go fetch. Punter'd better hope that they exist. Punter'd better hope that they work. If they don't, that's not just bad for punters pocket, its also bad for sustainability. Go on, chuck that multi-function printer into the local dump. Buy a new one. Good for the economy. Not good for punter's economy though.

What? Punter's machine isn't fast enough? Punter has to upgrade it now? That's bad for punter's economy too. Be sustainable though, all is not lost. Give the old machine to a charity or the local benevolent who'll put a distro on and make somebody not as well of as punter very happy.

Ah, yes, of course, punter needs to do some word processing. It's not already on the machine. Darn. Ok, punter will have to go out and get it (again, bad for sustainability). Sorry, that's HOW much? If only (by now) poor punter had heard of Open Office. Ah, but "most people" use Microsoft Word and that's "the standard". Is it? Which version? Right-ho. Confident that you'll never have someone who can't open your attachments? No? What about all of the Open Office users out there? Punter needs to obtain an extension to read those. Can't be having standards that all use nicely. Not while Microsoft is in the room. It's their raison d'etre. It's an extension so that it can be the next playing ground for creating inconsistencies and trying to remain the dominant format via dirty tricks.

Punter didn't need to buy Microsoft Office. Punter only bought it because he had lots of money to chuck around, he knew no better, or perhaps was directed to do that by somebody whose income is related to supporting or selling said products.

Punter finds his key program isn't available for the new version of Windows. Punter wouldn't have bought new version of Windows if he'd known that. That was his only reason for going with Windows.

If punter was a corporation, multiply up the cost. Add on the server for this, server for that costs. Note how many servers you appear to need compared to other solutions. Always more. Always more.

And then there would be the added costs of staff. Now, do you employ someone who only knows the Windows family of operating systems? Wouldn't PunterCorp be better off employing persons with the aptitude to grasp many differing operating systems? Wouldn't PunterCorp be better off employing staff who won't keep yielding invoices?

System down. Oh dear, it's serious. Reinstall. Where's the original media? Worse yet, where's the licence key? In the safe? The person with the keys is out for the day? Oh dear, poor PunterCorp.
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Contributr
So, do some research
Ed Bott 6th Jun 2009
Your entire premise rests on having to enter a license key to install Windows.

Except you don't have to do that. You can skip the license key completely and run for 30 days. You can renew that eval period up to three times for a total of 120 days.

That was true with Vista, it's true with Windows 7, and it's now true with Windows XP SP3.

As for device compat, again, you haven't actually installed Windows 7 have you? Because its device coverage is simply amazing. Between inbox drivers and Windows Update, I'd say there's about 99% coverage on the systems I've tested here, some of which are quite old.

Anyway, this tangent is off topic. I asked a specific question in the initial comment and your reply doesn't even begin to answer it.

If you want to write opinions like this, go get your own blog, OK?
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LOL! fr0thy2 done got Bott-pwned!
ericesque Updated - 7th Jun 2009
Ed, kudos, Sir. Kudos.
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hum, ms pricing...
brokndodge@... 7th Jun 2009
$50 for home premium upgrade, $75 for home premium oem, $100 for retail box. no per user or per cpu licensing in the professional or server versions.

but that would be too much like right!
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$100 for Win 7 Pro upgrade is good if you can do a clean install
Randalllind 7th Jun 2009
If it requires Vista installed then it not a good deal.
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Microsoft seems on target
Citizen Gkar 7th Jun 2009
$50 seems more than reasonable for an upgrade, and I imagine many folks like me, who would probalby upgrade when they bought a new pc (I have Vista because my laptop came with it) will be more likely to jump in. As for me, I will be upgrading my desktop from XP to W7RC in the next month to see how things go. I will upgrade both at that price point.

Beyond that, I do not understand the Taliban-like devotion some have to this or that operating system. I prefer Windows, work with Macs sometimes, and play around with Linux on a couple of old Pentium laptops teaching my daughters about computing. These are tools folks, not sacred texts. Use what works best for you and your company, and be flexible to change if need be. Does not seem so complicated.

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Blasphemy!!
Worth2Cents 9th Jun 2009
Infidel: We shall not rest until your data flows into the streets! The holy DOS, written by the prophet Bill Gates, teaches that the only punishment for heresy is none other than DEL C:\*.*
That?s right, and after I open up a can of jihad on your CPU, you had best believe I WILL get my 42 unopened copies of Office.
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Now, that was funny!
rs_jr 12th Jun 2009
NT
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good one Worth2cente
Citizen Gkar 20th Jun 2009
hehe happy
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$50? maybe.... more & MS can forget it.
ThePoke 9th Jun 2009
Sick of the relentless downgrade spiral, anything more than $50 will push me to a linux-based netbook or even Apple-based PC.

I'm tired of 3/4 the muscle I'm paying for being wasted on security products to patch holes in parts of the OS I don't need or use... (yet are enabled by default).

I'm tired of hunting down sys administration processes that kick off and steal 80% of my CPU when I'm trying to do real work...

I'm tired of MS deciding THEY should reboot my PC and lose days worth of reading & research when I step away for dinner or coffee...

I'm tired of my stuff being searched, indexed and shared as I work, killing my productivity by hogging mem and disk IO while I'm working.

I'm sick of 24 hour virusscans and 4 hour defrags to patch problems with the OS and FS that should have been fixed during programming.

While Win7 may fix SOME of these problems... some of us have gotten tired of the last four rollouts that promised to fix these problems... yet only made them worse.

MS has lost face with most of it's customers...
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Windows 7 pricing
BigD Out West 10th Jun 2009
Microsoft had better be carful with this one. After fighting and spending tons of money on Vista, I am not going to repeat it! I have a RC of Windows 7 running on an old computer and it works well. But if they think for one minute I will shell out another 200 to 300 per licence (I have 3 pc and one Mac) then it is aduios to PC and hello more Macs! 29 is far more resonable to charge for a operating system. And Apple has "family" packs too where I can run one ops system on 5 Macs!!!!! Come on Microsoft step up to the plate and drop the prices so they a affordable!!!!!
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No Not Good Enough
bishopsumo 24th Jun 2009
This is how the Mob operates... they com into your store break all your candy jars then for a small fee offer keep people form breaking your candy jars.

This might just be the one that causes customers to look a bit harder at other options.

FREE and an apology is the only right price for Vista sufferers
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Here is my pricing strategy
Mr. Dee 5th Jun 2009
Windows 7 Home Premium (FPP) - US $150
Windows 7 Home Premium (UPG) - US $75

Windows 7 Professional (FPP) - US $230
Windows 7 Professional (UPG) - US $120

Although these SKU's will not be in the mainstream, here are my suggestions:

Windows 7 Ultimate - US $270
Windows 7 Home Basic - US $60
Windows 7 Starter - US $30
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As long as there aren't 50% increases
Michael Kelly 5th Jun 2009
or something along those lines I don't think it makes much of a difference, at least in the USA. If people want Windows, they will buy it. Unit license cost was never really the barrier in the USA.

And since most people are getting it preinstalled, the price gets hidden in the price of the computer anyway.
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price is a mojor barrier in the us...
brokndodge@... Updated - 7th Jun 2009
price is the reason i went to linux years ago. it's the reason many of my friends and family were still running win9x until their machines could no longer be sustained. it's the reason most 'in the know' haven't switched to vista. (the rest that haven't switched don't know they have an operating system.) it's the reason my wife refused to purchase a retail copy of xp 5 years ago. she could buy another computer for what they charge for windows.

no, price is everything. but if they price it too low then they may not be able to keep up with demand. price it too high and (like vista) there will be no demand.
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Price is a barrier !
mik3 8th Jun 2009
It's the reason I'm still running a P233 with Win98SE and IE6 (with every security measure I could enable). Still surfing the web with this dog on dialup. Had to remove all risky software like Quicktime, Adobe, Flashplayer, etc. Not sure how safe it is on the internet, but haven't found any malware when scanned with avast!, SpyBot S&D, etc.

In contrast, my son's Win XP system got some autorun related malware infection recently that I had to remove.
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RE: Will the Windows 7 price be right?
nothingness 5th Jun 2009
50 bucks would be just right, especially if we can upgrade from XP.
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You won't be able to
Cylon Centurion 5th Jun 2009
XP users need to perform a clean install.
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Pricing Strategy
Cosmo54 Updated - 5th Jun 2009
No, $150 is definitely too high for Full Install Home Premium.

Retail list price $129 absolute tops, discounted to sell at Walmart, Best Buy, and online retailers for $99-109. And that's for a 3-PC home user license.

Higher prices than these, and MS will be following Chrysler soon enough...
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RE: Will the Windows 7 price be right?
msanto00 5th Jun 2009
Does anyone know if you will be able to "clean install" an upgrade version? For XP, it was simple (enter the 98 key during install), for Vista, you had to use a workaround. What about 7?
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Last I Heard...
visualambrosia 5th Jun 2009
... if you have WinXP and get a Win7 upgrade DVD, it will detect your WinXP install are offer you a clean install option.
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Lol ! Massive thread deletions!
nizuse 5th Jun 2009
Someone's cleaning unwelcome info here... I entered this page. Saw that half of frothy's and m2gp's posts were deleted. Then refreshed my page and noticed whole threads were gone.
Way to go ZDNet. Live and let live...
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cool
shellcodes_coder 6th Jun 2009
happy
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Contributr
We try
Ed Bott 6th Jun 2009
We (moderators, me, ZDNet mgmt) get a lot of feedback from people who say they don't feel comfortable participating in conversations here because there are so many off-topic, rude, and pointless comments.

What you just saw is part of an ongoing effort to make this place a home for lively, civilized conversation. Thanks for noticing.
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Why don't you guys ban them?
shellcodes_coder 6th Jun 2009
That's what they keep doing, damn!!
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I've asked that again and again....
MGP2 Updated - 6th Jun 2009
As one user stated in his "cause and effect" post (deleted), if he gets deleted, he just comes back stronger and more obnoxious (my words, not his, but same premise). If not an outright ban, their screen name should be suspended either for a period of time, or from a particular thread.
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Contributr
Please contact me offline.
Ed Bott 6th Jun 2009
My e-mail is at the bottom of this post.
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Good idea.
nizuse 6th Jun 2009
That will also give you a bit less work. happy
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Contributr
Impractical
Ed Bott 6th Jun 2009
I've asked the moderators about this and the consensus is that when you ban someone they just re-register. People do get banned for honest-to-goodness spamming, but many people who occasionally see their commnts deleted are fully capable of posting intelligent TalkBacks that contribute to a dialog, even a heated one.
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A broken clock is right twice a day. But that doesn't mean...
ye 6th Jun 2009
People do get banned for honest-to-goodness spamming, but many people who occasionally see their commnts deleted are fully capable of posting intelligent TalkBacks that contribute to a dialog, even a heated one.

...you shouldn't fix it. Ban them. And if they re-register ban those accounts too.
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I don't think it's necessary
nizuse 6th Jun 2009
People who have their posts deleted will likely notice, and tone down. All it takes is a reasonable moderator who uses his powers wisely. That excludes of course some people happy
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History is not on your side.
ye 6th Jun 2009
People who have their posts deleted will likely notice, and tone down.

It's the same people time and time again. Ban them.
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Hardly...
MGP2 Updated - 6th Jun 2009
People who have their posts deleted will likely notice, and tone down.

Like yesterday, when one user posted a talkback titled "Cause and effect" where he said that being deleted only caused him to come back more. Plus, your average 20-25% per Windows thread doesn't seem to deter you from answering nearly every post in a thread.
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Small correction
nizuse 6th Jun 2009
I don't think your stats are correct. Btw, in the thread where I did post heavily yesterday it was actually you that I was replying to. I accidentally hit a sensitive nerve when I noticed (and posted) that you seem to act like a self-appointed Ethics Moderator all over ZDNet. Not that I care - the more power to you man, if it makes you feel good. So, after that posting you got all excited man and you keep on following me. Keep it up!
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it that why you keep deleting my on topic posts with links back to my own..
brokndodge@... 7th Jun 2009
blog with more detailed information?
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Contributr
I can't delete anything
Ed Bott 7th Jun 2009
Only a moderator can do that.

I also don't recognize your user name and can't ever remember seeing a comment by you, much less seeing it deleted.

But if you're linking to another website exclusively to drive traffic to your own pages, you might want to read the terms of service here.
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I was thinking that $199
davebarnes 5th Jun 2009
for the Ultimate Super-Duper version Family Pack (up to 5 computers) would be about right.

After all, that is what the "Overpriced Fruit-Flavored" operating system costs.

Oh, sorry, on sale at Amazon for $130 USD.
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they're re-selling the same OS
directory Updated - 6th Jun 2009
The price is low because they're re-selling the same OS (Vista) with only a few new user features (Win7)
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Contributr
You really need to look a little closer
Ed Bott 6th Jun 2009
There's an awful lot of new stuff in there.
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Dude you have never used 7, have you?
shellcodes_coder 6th Jun 2009
Before showing your ignorance, you should have used 7. Anyway here's what's new in Windows 7: http://en.wikipedia.org/wiki/Features_new_to_Windows_7

damn!!
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Actually, you're wrong...
HypnoToad72 6th Jun 2009
I toyed with the toy, and I'd reckon they junked the Vista code, went back to XP, and added the pretty Aero interface and bitlocker back in.

Along with a hamfisted attempt at "XP Compatibility mode" that otherwise renders the need for a MS OS at the core obsolete (Linux, BSD, OS X do the same thing and much faster too).

Whee.

Minimum system requirements are said to be higher than Vista's as well.

It does look to perform better on low end machines, but people with XP -- there just is no reason to spend the money, time, and tech support to get it installed.


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No, actually, you're wrong
rtk 6th Jun 2009
Vista shares the 2k8 server kernel, which didn't have Vista's marketing issues and was widely accepted as stable, fast and reliable. Many geeks are using modified versions of 2k8 as their desktop to get the kernel improvements and more of the 2k3/xp style interface.

XP shared the 2k server kernel, it ain't makin' a comeback, for good reason.

Your rant about XP compatibility mode doesn't make a lick of sense, please elaborate.

Minimum system requirements are said to be the same as Vista. There is just no reason and absolutely no sense in downgrading from Win7 to XP come the end of October.
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RE: Will the Windows 7 price be right?
FAULKNE 13th Oct
Good day to confirm this comment I would appreciate T h e b e s t o f Z D N e t d e l i v e r e d your website very nice to everyone Yes, Oracle is the only one with shared-disk architecture, but that is there advantage. It means you can add or remove nodes and the database lives on. In a shared nothing architecture, if you lose a node, you lose the system. I'm sure Oracle appreciates EMC highlighting their advantage.I also desire to signal in your RSS feeds. Thank you as soon as once again and maintain up the great operate Awesome post! Thank you very much || thanks for nice content this is really benefit to me.

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