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Microsoft's 'new' XP policy for netbooks isn't new

A Windows executive's statement this week that Microsoft will continue to provide netbook makers with XP if they want it for a year after Windows 7 ships isn't a new policy. It is a restatement of what company officials said a year ago.
Written by Mary Jo Foley, Senior Contributing Editor

A Windows executive's statement this week that Microsoft will continue to provide netbook makers with XP if they want it for a year after Windows 7 ships isn't a new policy. It is a restatement of what company officials said a year ago.

In 2008, Microsoft announced officially its decision to allow vendors of low-cost laptops to continue to bundle XP through 2010 or for a year after the next release of Windows (a k a Windows 7) shipped, whichever came last. At that time, Microsoft and a number of other industry players were calling these PCs "ULPCs" (ultra-low-cost PCs), not netbooks.

From an April 3, 2008, blog post I did:

"As Microsoft officials announced on April 3, makers of ULPCs will be allowed to continue to preload XP on ULPC machines until June 30, 2010, or one year after general availability of the next version of Windows, whichever comes later."

If Microsoft launches Windows 7 this fall, as many are expecting, netbook makers will be allowed to continue to preload XP on new systems through fall 2010. Given that Windows 7 has been shown to perform quite well on netbooks, there are only a couple of reasons I can see vendors wanting to preload XP once 7 is out:

1. If Microsoft tries to gouge vendors on price with Windows 7. Right now, Microsoft is believed to be charging PC makers $15 a copy for XP. Microsoft hasn't yet told OEMs what it plans to charge them per copy of Windows 7 Starter or Home Premium (or any other Win 7 SKU for that matter). If Microsoft goes much above $15 per copy, it will leave the door wide open for Linux/Android, etc.

2. Users want to continue to run XP apps which won't work with Windows 7. The new XP Mode capability Microsoft is introducing with Windows 7 is designed to work on higher-end Windows 7 SKUs, not the low-end ones likely to be preloaded on netbooks.

Anyone else see any reasons users and PC makers might want to keep offering XP after WIndows 7 ships?

Speaking of Microsoft and netbooks, Microsoft's netbook "Jedi mind tricks" (gotta love those Reg headlines) are just one of the topics that Gavin Clarke and I cover in our latest "Microbite" podcast -- which is now posted and available for your listening pleasure.

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