ie8 fix
madison

Windows 7 customers still paying for Microsoft's Ultimate mistakes

By | August 17, 2009, 9:27am PDT

Summary: Over the past few years, I’ve criticized Microsoft for its “irrational” Windows pricing. That’s especially true for Ultimate edition, which was your only choice if you wanted certain combinations of Windows Vista features, like Media Center and Complete PC Backup. Now, as Windows 7 approaches its official launch date, will Vista Ultimate users get another gouging? Or is Microsoft getting ready to unveil another “special deal”?

Three years ago, when Microsoft was in the final stages of getting Windows Vista ready for its launch, I looked at the official price tag for Vista Ultimate edition and concluded:

“Yes, Microsoft really is price-gouging…. anyone who’s eyeing Vista Ultimate has every right to feel like they’re being ripped off.”

And even when Microsoft slashed Windows Vista prices last year, I still found them “higher than any sane person would pay.” That was especially true for Ultimate edition, which was your only choice if you wanted certain combinations of features, like Media Center and Complete PC Backup.

Now, as Windows 7 approaches its official launch date, will Vista Ultimate users get another gouging? Or is Microsoft getting ready to unveil another “special deal”?

Earlier this summer, Microsoft announced special limited-time Windows 7 upgrade pricing deals, with Home Premium going for $50 and Professional edition offered for $100. So where was the special upgrade offer for Ultimate edition? A complete no-show. So far, at least, the cheapest option for upgrading to Windows 7 Ultimate is $220, which is the estimated selling price for an upgrade package.

With Windows 7, Microsoft is trying to do a complete U-turn on its messaging for the Ultimate edition, downplaying its importance in the lineup. The advanced feature set has been redistributed more reasonably, making Windows 7 Home Premium a perfectly good choice for most consumers and Windows 7 Professional a worthwhile substitute for Vista Ultimate (the only thing it’s missing is BitLocker and language packs). If you paid top dollar for Vista Ultimate because it was your only option, Microsoft says you can probably choose a less expensive Windows 7 edition.

Ah, but downgrading from Vista Ultimate to a lesser edition isn’t a supported option, and as far as I know there isn’t a hack to make this sort of in-place downgrade possible. So if you want to save a few bucks you’ll need to spend some extra time doing a custom install, transferring your data and settings, and then reinstalling your programs. That’s not necessarily painful, but it is tedious—requiring an afternoon or a full evening even if you’re the organized sort. By contrast, an in-place upgrade from Vista Ultimate to Windows 7 Ultimate (the only supported path) takes an hour or so and is pretty much seamless.

Probably the biggest mistake Microsoft made with Vista was in setting unrealistic expectations for Ultimate Extras. I’m sure the Windows 7 team cringes every time they’re reminded of the puffery and promises their predecessors made about what turned out to be an Ultimate Embarrassment. Over the past few years, Microsoft has tried to stuff those references to “cutting-edge programs [and] innovative services” down the memory hole. Indeed, they’ve shut down the Secure Online Key Backup service that was one of the signature Ultimate Extras, and the handful of games that made it to Windows Update don’t survive an upgrade to Windows 7. (Ouch.)

I’ve heard whispers that Microsoft is planning to offer a Windows 7 Ultimate upgrade deal, similar to the discounts it offered earlier in the summer for Home Premium and Professional. I hope those rumors are true and not just wishful thinking. Offering a fair Windows 7 price for Windows Vista Ultimate users would take much of the sting out of the upgrade process for some of the company’s most loyal customers.

Kick off your day with ZDNet's daily e-mail newsletter. It's the freshest tech news and opinion, served hot. Get it.

Topics

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.

91
Comments

Join the conversation!

Just In

Gouging? Let's see...
Rick_K 29th Oct 2009
As a college student, I can buy upgrade to 7 for $29 to $99, and get
office 2007 for a whopping $79. Now divide the difference between
those prices and retail. Figure home premium goes for $120 retail
(upgrade), they could still sell it for $79 and make a profit, and still cover
the cost of support. So I guess charging the extra $40 is what illicits the
claim of gouging. Now given that vista to 7 is the same as Leopard to
Snow Leopard, some will say that anything over $30 is gouging. I am
willing to give them $50 for support costs, as Apple does not have the
same high support costs.
if they offer me a special deal - in the neighborhood of $49-$99 for an upgrade licence. Though thats a pipe dream happy So i'll probably stick with Vista til its no longer supported and then hopefully Blizzard will have released a Linux native environment for World of Warcraft happy Wine and Cedega sucks sad
0 Votes
+ -
Seconded
dogbreath1 Updated - 17th Aug 2009
No way I'm paying more than $100 for the 7U upgrade. I feel ripped off
enough with VU. It was bought to run in a VM on a Mac and it's dreadful.
I've tried the 7RC with classic Windows theme and it's fine, but it's a
terrible insult to expect customers to pay so much for an interface
overhaul that should have been there 3 years ago.

Thank you, Ed, for highlighting the VU issue.
0 Votes
+ -
Wait wait, let me get this straight
gnesterenko 17th Aug 2009
So prior to Vista Ultimate release, several sites ran articles delimiting what would be included in the version, and concluding that the price was not worth it. Ignoring sound advice, people went ahead and purcahsed Vista Ultimate anyway. And now, 3 years later, the complaints continue?

Two words: Buyer Beware

A sensible approach would have been to evaluate whether you needed it in the first place. Many enthusiasts did NOT in fact need Vista Ultimate but baught it anyway cause they have to get biggest and best. While I agree that the ultimate upgrade for win 7 should probably be cheaper, I've zero sympathy for folks that don't do research prior to making a purchase decision.

"The views expressed here are mine and do not reflect the official opinion of my employer or the organization through which the Internet was accessed."
0 Votes
+ -
Sorry, bunky!
dogbreath1 Updated - 17th Aug 2009
"Monday morning quarterbacking" is not allowed. Three years ago,
when Vista was released, nobody knew what a rip-off
Ultimate was going to be. I can't tell you how long it took before the
trade
rags started warning consumers--until Microsoft was quietly telling
its
insiders not to expect anything really worthwhile--but it was probably
at
least a year later.

At the time of first release, Vista was already ~2 years late. Early
adopters got
shafted, not just with the higher price but the lousy UI. Now Vista
Ultimate
buyers are being asked to pay a hefty fee to be able to upgrade
without a
clean install. I disagree with Ed about how little of a burden it is to do
a clean
install. It can take several hours spread over days to weeks to bring a
system
back. Even if it can be done in one night, what professional has that
kind of
time? It's belittling/demeaning of customers, but I'm sure the chiselers
at
Microsoft saw this as another scheme to generate revenue.

When is Microsoft going to learn something from Apple about how to
upgrade its users and migrate them from one platform to another?
0 Votes
+ -
Oh, come on!
mwagner@... 18th Aug 2009
All one had to do was look at the "Compare Editions" link on the Vista website (http://www.microsoft.com/windows/windows-vista/compare-editions/default.aspx) to know exactly what Vista Ultimate buyers were gettign for their extra money. Caveat Emptor.
0 Votes
+ -
we did
KrazdKiller 19th Aug 2009
that is why we went with vu, because of the promised extras. people get a clue and blame microsoft and not the end user for a poorly writen os prior to sp1 and shafting us on the extras.
0 Votes
+ -
Nice assertion BUT...
JT82 17th Aug 2009
I needed Vista Ultimate because it contained Bitlocker. I wanted that feature and felt the need to pay the money for it. Am I feeling kinda burnt on the price? Sure. Do I regret my purchase? No. Am I going to pay the money to upgrade to W7 Ultimate when it does no more for me than Vista Ultimate? No.

Ask more questions next time happy Thanks.
0 Votes
+ -
Here's a question
gnesterenko 18th Aug 2009
Why didn't you do a google search. 5 seconds found this: http://www.truecrypt.org/

Sooo, once again, zero sympathy.
0 Votes
+ -
It is mostly a bug fix
Olorin_z 18th Aug 2009
When I last bought a laptop, it was only available with Vista. After much work, I managed to make it talk to the wireless network, and share files - until SP2. Finally Microsoft succeeded in making it too difficult for me to figure out how to make if unction correctly - but Win7 beta works. Neither of them will run all my software, so maybe XP would be better than either.

I will feel cheated if I have to accept either a system that does not work properly, or pay lots for an "upgrade" which is really just a bug fix. If only I could upgrade from Vista to XP!
0 Votes
+ -
moron
KrazdKiller 19th Aug 2009
people went with vista ultimate just for the ultimate extras which we never got. the fact that microsoft chose to not give us what we paid for is why we feel that we should get a deep discount on 7. and if you are at work you should be doing your job and not posting in blogs when you do not have a clue what you are talking about.
0 Votes
+ -
With what Ultimate cost me
happyharry_z 17th Aug 2009
I'm not switching. Gouge me once, shame on you. Gouge me twice...
0 Votes
+ -
With what Ultimate cost me
bvonr@... 19th Aug 2009
I will do a clean install of Win7 Pro not because I have time but because a clean install is better and gets rid of all the extra programs I install to see if they work for other people before I recommend it to them. I like Vista Ultimate and didn't get it for the upgrades and won't miss anything I would lose going to W7Pro
I'll stick with XP until they stop supporting it, or
until I need a new pc, in which case I'll probably get
Home basic or Premium.
0 Votes
+ -
Contributr
You probably won't get Home Basic
Ed Bott 17th Aug 2009
It's not being sold in the U.S., Western Europe, Australia, Japan, etc. It's only available in "emerging markets."
0 Votes
+ -
SKUs me!
jeremychappell 17th Aug 2009
Why the hell are Microsoft so stupid, what is it with the SKUs? Nobody
can keep them straight in their head. Why don't they just either, forget
the whole think and do "Windows 7" no SKUs just simple one product.
Or if they absolutely must have "Home" and "Professional" (it worked
of XP).

The whole SKU thing confuses and annoys customers (is that a good
thing?) and gives an open goal for Apple's marketing department (as if
they needed another one).

Seriously Microsoft, it Windows 7 rubbish edition doesn't cost any less
to produce than Window 7 Ultimate Edition, so why are you charging
different prices?!
0 Votes
+ -
Differing markets obviously.
Sleeper Service 18th Aug 2009
As anyone with any commercial sense will tell you.
0 Votes
+ -
Hmmm
preacherx 18th Aug 2009
Why screw just a couple of groups of people when you can really screw with the masses (e.g. millions); and make a helluva profit while you're at it. It's the very essence of capitalism realized in Redmond... why mess with a good thing?
0 Votes
+ -
For the same reason that Honda ...
mwagner@... 18th Aug 2009
... doesn't offer just one model of the Civic. Because doing so cuts too many people out of the marketplace. If you don't want to pay for features you don't need, you don't have to. It's only the people who want the extra features FOR FREE that complain about tiered pricing.
0 Votes
+ -
Software Packages Are Not Cars
chessmen 1st Sep 2009
This nonsense about not paying for features that you don't use is silly. Microsoft wrote the code; it cost them nothing to have it all in one package. Microsoft creates all these "versions" for the express purpose of up-selling to clueless customers. In terms of production, it probably costs them a little more money to have several versions, but they can more than make up for it by shafting it's customers.

I would love to see an all inclusive Windows package with family packs similar to Apple's $199 five license deals.
First the family pack was added later, and now possibly more deals? It really puts customers in a bad position trying to figure out what deal is the best for them. And if someone purchased the pre-order only to find out an Ultimate deal comes out or waited for the possibility of another deal, it definetely isn't a great feeling.
0 Votes
+ -
Contributr
You can cancel any pre-order
Ed Bott 17th Aug 2009
In all pre-orders, your payment is not processed until the product is shipped, on or after October 22. If you find a better deal, you can cancel your pre-order.
A step in the right direction for them at least ....
0 Votes
+ -
Contributr
Always have
Ed Bott 17th Aug 2009
As do their resellers.
0 Votes
+ -
The consumers right to no rights is coming to an end.

Hence the positioning of this actual blog...
0 Votes
+ -
in an alternate reality?
Mitch 74 18th Aug 2009
Fact: early 90's, slap on the wrist for MS: they were charging OEMs for every PC shipped, with or without MSDOS+Windows.

Fact 2: Windows NT 4 ships with POSIX capabilities; however, this subsystem runs without access to the hardware, and is therefore useless.

Fact 3: Microsoft is ordered by the EC to provide an option to uninstall IE and allow user to choose another browser. For more than a month, the solution MS proposes is to ship Windows 7 without any browser whatsoever.

Fact 4: in Europe, it is forbidden to force the sale of two independent products without making each of them available independently (it is allowed to sell reduced price packages, though); Microsoft pretty much forbids PC makers from selling 'naked' machines. Only very big ones (like Dell and HP) can afford to fight back. Resellers try to charge consumers for removing the OS (and every time this is brought to court, resellers lose).

Fact 5: Windows Vista Ultimate.

Fact 6: fights against interoperability (.DOC, .PPT and .XLS specification documents were removed from public scrutiny from 2001 to 2008; seat stacking at ISO, almost destroying the standards body in the process; Internet Explorer 6; CIFS)

Fact 7: PlaysForSure

This list is not exhaustive.

Will you thus stand by your 'always', or were you being sarcastic?
0 Votes
+ -
You made most of that up
jdbukis@... 19th Aug 2009
fact.
0 Votes
+ -
POSIX in Windows doesn't allow the creation of threads nor windows: http://en.wikipedia.org/wiki/Microsoft_POSIX_subsystem

Microsoft charged PC makers even on white box systems, by enforcing deals that increase software prices if OEMs sells Windows-less PC http://www.kuro5hin.org/story/2001/10/23/13219/110

Microsoft forces Windows bundling, even in countries where it is forbidden: http://en.wikipedia.org/wiki/Windows_refund

Windows Vista Ultimates was sold with promises for extras. Two years later, no Extras exist and the built-in install screen doesn't mention them any more. No refunds.

.DOC, .XLS and .PPT closed down: Bill Gates' memo, copied from Iowa vs. Microsoft: http://www.groklaw.net/pdf/Comes-3078.pdf; CIFS: Samba vs. Microsoft, 2006; Microsoft forced to open its CIFS protocols; ISO changing how countries can take part in a vote, following adhesion of two dozens countries voting for MS's OOXML and then never being heard again, delaying several standards that required majority votes.

PlaysForSure: no Zune support, forced burn to CD http://www.absoluteastronomy.com/topics/Microsoft_PlaysForSure.

I made up half a dozen court rulings, several articles on the web, or even changed ISO's admission process by myself? Damn, I'm good.
0 Votes
+ -
good drugs
KrazdKiller 19th Aug 2009
and how much acid did you take durnig your high school days?
0 Votes
+ -
They do offer deals.
Rick_K 29th Oct 2009
If I were to buy windows 7 ultimate through the college I am attending, it
is only $99. That tells you how much they are shafting the retail
customers. Home premium is $29, but i do not see anything for windows
7 business. We got my wife a copy of office 2007 ultimate for $79
including the disk. If Microsoft can profit with those prices, just imaging
the profits at the suggested prices. Granted hald of the difference is for
support costs, but there is still a lot of profit factored into the cost.
0 Votes
+ -
Bravo Ed for writing something that doesn't
xXSpeedzXx Updated - 17th Aug 2009
exalt the almighty Microsoft.

While I agree the price gouging of users in Vista was extreme, in Win 7 however, there really is no compelling reason to go to ultimate, unless you like bit locker, but even there that upgrade is only $20, unless they rape their customers again by the $139. anytime upgrade fee. Bastards. (Still pissed off about that one.)

But in Win7 the Professional edition has Media Center built in, whereas Vista Business did not, hence the incentive for people who bought computers with Business installed, who wanted all of the features of business and Home Premium, Ultimate was the choice. the price difference between Business Edtion and Ultimate was $20, but they stuck it to users by raping them with anytime upgrade. I still want to sue MS over that Cluster F*ck. I upgraded one machine that way, never again!!

Win 7 is doing it right this time, with the only feature on Ultimate being bit locker, which I really couldn't give a rip about, with free alternatives such as truecrypt, Windows Ultimate can just go away and die.

Edit: Personally I say MS should give some sort of rebate to customers it ripped off with Anytime upgrade, although the family pack is looking like a good deal, but if they azz rape people with anytime upgrade then forget it, I won't upgrade, except if it comes preinstalled on new machine.
0 Votes
+ -
Heh...
Dave32265 17th Aug 2009
They should give a rebate to everyone they inflicted with vista.
0 Votes
+ -
How do you define gouging?
otaddy 17th Aug 2009
For most of the people who post here, it seems that gouging is defined as paying a price you feel is too high...unless you are the one selling something, then the price you charge can never be called "gouging".

That said, Microsoft could reap a huge dividend in good will by offering Vista ultimate users something of a discount to move to 7.
0 Votes
+ -
A good definition of gouging
xXSpeedzXx 18th Aug 2009
is where the difference between 2 versions of Windows, Business and Ultimate is $20, but in order to upgrade to it they charge you $140 through anytime upgrade. That is gouging, that means that copy of Ultimate costed me $120 more that had I just bought a retail copy of Vista ultimate, and a blank computer. I wouldn't be as sour about it had it ideally been just $20 to upgrade my business edition to Ultimate, and it should have been no more than $50.

If MS intends to keep screwing its customers with overpriced upgrades, rather than just charging the difference and maybe, maybe, 5% more, then they can take their software and stick it. MS is their own worst enemy when it comes to pricing.
0 Votes
+ -
Gouging? Let's see...
Rick_K 29th Oct 2009
As a college student, I can buy upgrade to 7 for $29 to $99, and get
office 2007 for a whopping $79. Now divide the difference between
those prices and retail. Figure home premium goes for $120 retail
(upgrade), they could still sell it for $79 and make a profit, and still cover
the cost of support. So I guess charging the extra $40 is what illicits the
claim of gouging. Now given that vista to 7 is the same as Leopard to
Snow Leopard, some will say that anything over $30 is gouging. I am
willing to give them $50 for support costs, as Apple does not have the
same high support costs.
0 Votes
+ -
Paying and Paying and Paying
bigpicture 19th Aug 2009
MS customers will continue to pay and pay and pay
until Google gets at MS's throat and "cuts off its air
supply".
0 Votes
+ -
Do you think...
bjbrock 17th Aug 2009
they shouldn't charge for the extras you get in ultimate?
0 Votes
+ -
Contributr
What extras?
Ed Bott 17th Aug 2009
I have no problem with the tiered pricing, but the pricing for Ultimate, especially now, is completely irrational.
0 Votes
+ -
Which is Why
bobiroc 17th Aug 2009
I think Microsoft decided to put Media Center into Pro. I remember taking a survey and I answered just that. I would have just gotten Vista Business if it had Media Center.
0 Votes
+ -
I honestly do not see at all
gnesterenko 17th Aug 2009
What people seem to think is so wonderful and necessary about Media Center. Most bloated, slow piece of player I've ever tried using and promptly removed the short-cuts to (afraid to try to nuke it all together). VLC player. Media Player Classic. Both superior options as far as I can tell and completely free. Perhaps I'm missing something?

"The views expressed here are mine and do not reflect the official opinion of my employer or the organization through which the Internet was accessed."
0 Votes
+ -
Media Center is a great program
otaddy 17th Aug 2009
I use it to stream my mp3's and photos to my xbox in the living room. Not sure what you are doing but I have never found it to be slow.

I think Microsoft should have done more advertising of this feature (and done more to promote the MC extenders) as many of my friends comment on how cool this feature is. Whenever I have a party I fire it up to play tunes and to display our photo collection.
0 Votes
+ -
Eh
gnesterenko 18th Aug 2009
I meant more slow to load then anything else. But other then that, I guess the picture slide is kinda cool but nothing I've ever used or would even have occasion to. Anyway, I guess I was missing something - just nothing I needed. THanks!
0 Votes
+ -
How about Suround Sound
Michael L Hereid Sr 20th Aug 2009
on dvd movies. How about recording TV movies and a lot have digital sound
Oh and Media Plasyer will not play DVD Movies in suround sound.
Mike
0 Votes
+ -
To Many Versions
sandmanfvr 17th Aug 2009
XP did it right: Home and Professional. PERIOD. No more, mo less. (Yes there was embedded but I mean the main 2). Why can't Windows 7 be Home and Professional/Business? Money. Greed. If Microsoft wanted to show it made a U turn on all this version crap, then there wouldn't be so many Windows 7 versions. Alas there are still many versions and now this Ultimate fiasco. Bravo Microsoft, for making yourself the fools ago. Bravo.
0 Votes
+ -
Oh its so confusing
bobiroc 17th Aug 2009
And XP had 3 major versions. Home, Profesional and Media Center Edition. Windows 7 essentially has 4

Basic/Starter
Home Premium (Replacement For Media Center Edition)
Professional (Replaces Vista Business and XP Pro but has MCE features)
Ultimate/Enterprise.

I guess I do not see what is so hard about that.
0 Votes
+ -
Contributr
You missed a couple XP versions
Ed Bott 17th Aug 2009
Windows XP Tablet PC edition and XP Professional x64.

I don't find it confusing either...
0 Votes
+ -
Good Catch
bobiroc 17th Aug 2009
Forgot about Tablet and the 64bit Edition. MCE and Tablet were both based off of Pro but had added features. Where now home premium and above includes both the tablet and MCE features. I guess I hear over and over that there are so many versions but I fail to see the confusion. The versions are appropriately named.
Don't count your chicks before they are hatched! I bet some bargain pcs/laptops will come along and MS will allow Basic to be sold. Just watch.
0 Votes
+ -
Vista Ultimate
BitBanger_USA 17th Aug 2009
having some experience with Windows (going back to Windows 286) and having *purchased* many versions of Windows - including Vista Ultimate - i won't pay more than $50 for an upgrade for Windows 7 Ultimate. shame on you Microsoft.
0 Votes
+ -
question
blackhawk556 Updated - 17th Aug 2009
going from vista home premium 32 bit to windows 7 professional 64bit will require a clean install right?

EDIT
i just saw microsoft's upgrade chart (http://blogs.zdnet.com/Bott/?p=1246) and it confirmed it
0 Votes
+ -
Contributr
...

Join the conversation!

Formatting +
BB Codes - Note: HTML is not supported in forums
  • [b] Bold [/b]
  • [i] Italic [/i]
  • [u] Underline [/u]
  • [s] Strikethrough [/s]
  • [q] "Quote" [/q]
  • [ol][*] 1. Ordered List [/ol]
  • [ul][*] · Unordered List [/ul]
  • [pre] Preformat [/pre]
  • [quote] "Blockquote" [/quote]
ie8 fix
ie8 fix

The best of ZDNet, delivered

ZDNet Newsletters

Get the best of ZDNet delivered straight to your inbox

Facebook Activity

White Papers, Webcasts, & Resources
ie8 fix
ie8 fix