Windows 7 is what Vista should have been. I hate being charged twice for what was supposed to work the first time.
What PC makers are paying for Windows 7
Summary
Microsoft plans to charge PC makers the same for the business version of Windows 7 as it did for Windows Vista, while cutting the price of Windows 7 Home Premium as compared to its predecessor.
Topics
Microsoft plans to charge PC makers the same for the business version of Windows 7 as it did for Windows Vista, while cutting the price of Windows 7 Home Premium as compared to its predecessor, a top Windows executive told CNET News on Thursday. That matches a similar move for the boxed copy of the software.
Microsoft's pricing plans for Windows 7, which will be available October 22 on both new PCs, has been the source of considerable tension between the PC makers and the software maker, both of which are trying to grapple with both declining demand and falling prices for traditional PCs.
In an interview on Thursday, Senior Vice President Bill Veghte acknowledged that there has been tension between Microsoft and the PC makers over pricing, but said that is always the case when Microsoft readies a new version of its operating system.
"They'd love to have everything at dramatically lower prices," Veghte said, of the computer makers.
On the mainstream consumer side, Microsoft is only offering only one version--Windows 7 Home Premium, whereas with Windows Vista, Microsoft offered both a basic and premium version. Veghte says he understands that, from the PC makers perspective, Microsoft took away an option for low-cost PCs. In part, he said, that's why Microsoft decided to charge a price for Windows 7 Home Premium that was more than Vista Basic, but less than Vista Home Premium.
"We took a blended approach," he said. "It wasn't like I am trying to jack up the prices."
For Windows 7 Professional, as Microsoft did on the retail side, the software maker will charge PC makers essentially the same as it did for Windows Vista Business. However, he said, buyers are getting more with Windows 7 because the professional version also includes the consumer media features, something that wasn't the case with Vista.
PC makers, though, have continued to see both average selling prices and profit margins under continued pressure.
Veghte said Microsoft, too, has seen the amount of money it gets for each copy of Windows drop in recent years.
"Our average selling price has been declining as well," Veghte said. "It's not like we have sat there at the (same) price points the last five years."
For his part, IDC analyst Richard Shim said the fact that PC makers are complaining about price--and not the product itself--is a positive sign for Windows 7.
"If the only thing the market is squabbling about is price, that's a good thing for Microsoft," he said.
One of the biggest changes Microsoft did make in response to PC maker concern, was to lift a restriction on the Windows 7 Starter edition it is selling for use in Netbooks. Initially, Microsoft planned to restrict Starter-based PCs to running no more than three applications at a time.
Microsoft also agreed not to charge PC makers for a program in which, starting tomorrow, buyers of Windows Vista PCs can get an upgrade to Windows 7. That enables PC makers to offer the upgrades for free, or only the cost of shipping, without losing money.
Veghte said lifting the Starter restriction was important to computer makers and consumers and something that Microsoft could live with. The three-application limit began with Windows XP Starter Edition, which was aimed at first-time computer users and sold only on new PCs in emerging markets.
"It clearly was not winning any popularity contests," he said of the limit. "I don't think it fundamentally changes the business approach."
It does, though, pave the way for Windows 7 Starter to become the dominant operating system on Netbooks, Shim said. IDC forecasts that the Netbook market will shift largely from Windows XP to Windows 7 next year, but Shim said that much of that will be the lower-priced Starter Edition.
That means, Microsoft's Windows 7 revenue could be in for a hit if traditional notebook and desktop sales don't pick up. The upside, Shim said, is that Microsoft will benefit when sales do pick up, even if it is next year.
"Even if they only hit a single or double with the launch, they can get some extra bases in the coming years," he said.
This article was originally posted on CNET News.
Talkback Most Recent of 36 Talkback(s)
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dropmeoff27th Jun 2009 -
Quit bleating.
First of all, Vista isn't broken. Not with SP1. What exactly "doesn't work"?
Second, you don't HAVE to upgrade, no-one is charging you twice. That is your choice.
Third, you wan't the new product but don't believe you have to pay for it because the new product is better than the last. Tough. That is the way it goes. Otherwise you might as well complain to Ford you don't want to pay for a new car as that is what the Mk1 Ford Escort should have been like...
Install Linux, or buy a Mac, or even install XP. Heck, keep Vista. But don't complain you are being charged twice for something. You have other options. Use them.
Bozzer27th Jun 2009 -
Dick S29th Jun 2009 -
My Vista fell apart and disappeared on me!
People stupid OS. It was pretty for a while then I couldn't find the icons the it crashed then SP1 came out. Who can work on this OS anyway?
Thomas Rippley29th Jun 2009 -
Vista Fell Apart?
I have been using Vista since the day it came out buying a new system pre-loaded, granted there "were" vendors not providing updates/drivers in a timely manner and some that were going to take the stand that if you want Vista and you can afford that upgrade/new computer then buy their new improved hardware/software too, what a win win situation for them.
Still most of the people complaining are the ones who never even tried it. There's no shame is staying with XP hec I still have a sister on ME because that is all she needs and can't afford to upgrade her system.
So to answer your question "who can run this OS anyway" that would be me on 3 out of the 6 computers in my house, the others are: 1 XP, 1 Win7 RC, 1 Leopard 10.5 on Mini Mac. I have to many things I want to do with my computer not to advance so they get easier to do.
Northlite29th Jun 2009 -
Quit bleating.
I've had my Vista SP1 Notebook for just over a year now. I have had to do a "clean" reinstall 3 times already. On my last call to HP, after spending about an hour on line with the rep I was told to do another clean reinstall because the damn thing now refuses to recognize SD cards and there was nothing that HP could suggest to fix it other than ....
Now that my warranty period is over I installed Ubuntu and guess what: everything works just fine!
Windows Vista or Windows 7 (Vista 6.1 as identified by OS in the RC copy)sucks! I have been convinced that an alternate OS is the answer to all my woes. LINUX!
I have to keep a machine running on Windows because of the investment I have in Adobe Software but believe me MS is GONE everywhere
else!
and BTW, I will not be giving MS any more of my money. I love not being tied to MSFT any more!
mv5208th Aug 2009 -
Quit bleating.
Oh, BTW, I forgot to mention that after spending about 45 minutes trying to "upgrade" to SP2 the darn thing told me that it was reversing all the changes because it needed Vista SP1 installed... (Interesting is that SP1 IS the version installed on the PC - FROM HP!)mv5208th Aug 2009 -
what? what are they paying?
what a bunch of drivel. I have vista on 3 machines and I love it. never had any problems what so ever. so, what is the price? thought so, just more meaningless drivel.
photomstr@...28th Jun 2009 -
lol 3 vista coms
did you only use minesweeper and notepad?
Fobie29th Jun 2009 -
Prediction...
I predict that the same thing will happen to Windows 7 as happened with Vista. A lackluster market for new PCs will result in low numbers of first-adopters on the Home front. Meanwhile, businesses will hold off on new installs and upgrades for at least a year. Windows will still be the OS of choice for most users and businesses,but those with XP and Vista will stay with what they have now. (I'm sure others have said this before.)
Far-future speculation: Microsoft will abandon the OS market, porting Windows software to some UNIX variant,as Apple have done. The OS will become an irrelevant commodity. A new, unpredicted software market will emerge. Since said market is unpredictable, I can't tell you what it will be. If I could, I would become the next Bill Gates. All I know is that change is in the wind... If I am correct in my prediction, this will also cause major changes at Apple as well. UNIX variants differ only in flavor, so Apple won't be able to compete in the OS market either.
Which desktop environment would you prefer with your UNIX?
barence77328th Jun 2009 -
GNOME
quote: Which desktop environment would you prefer with your UNIX?
But I already use it, and given that I already have a choice (a genuine Free choice), by virtue of the Unix like OS I already use, I am free to change my mind tomorrow, and at the cost of a download (which I already pay for anyway) and an hour or two of my time, while I wait for all the files to download, I could quite easily, replace that desktop with KDE or XFce or any other Free Software desktop.
tracy anne30th Jun 2009 -
i predict...
i predict you are wrong. you didnt give much in terms of a timeline, so while i'm making predictions that could happen anytime between now and infinity, i'm predicting, that we wont use pcs forever thus, the os will be insignifigant. what we will use i dont know. there... hows that for vague.
mydasx2nd Jul 2009 -
RE: What PC makers are paying for Windows 7
windows 7 will be a failure just like vista
top43128th Jun 2009 -
RE: What PC makers are paying for Windows 7
I think that everyone who has already put up with the crap of
Vista should get a free upgrade at Bill Gates expense.
truckrdude195428th Jun 2009 -
RE: What PC makers are paying for Windows 7
If a car engine computer has serious issues then it would
be recalled by the manufacturer for a free fix.
The time and inconvenience to users having to download
the hundreds of fixes is evidence that Vista was
fundamentally flawed and Microsoft should therefore offer
a free replacement of Windows 7.
f.woodcock@...29th Jun 2009
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