Microsoft gets into PC hardware business

[Jason Dunn]

<a href="http://www.theinquirer.net/?article=4248">http://www.theinquirer.net/?article=4248</a><br /><br />Wow - I didn't see this one coming! The PC hardware business is a brutal one, and I'm shocked Microsoft would wade into it. Still, there's a great deal of power attached to the Windows brand, and if Microsoft tightly controls the hardware platform, they can likely achieve impressive stability. If this is true, it will alter the PC landscape in a big way over the next year.<br /><br />"A report in the Economic News claims that Microsoft and FIC will jointly launch a so–called "Dream PC" which doesn't even use an Intel chip, but instead makes use of a Via C3. The report claims that the first jointly developed "Dream PC" will be introduced towards the end of this month and that Microsoft will also show quite a few so called "baseline" or cheap machines which run with Via C3 600MHz chips and Windows XP...the report adds that each complete machine will cost between $300 to $400 and are aimed at the low end of the market which doesn't necessarily need processors running at 2GHz and above." Source: <a href="http://www.lockergnome.com">Lockergnome</a>.

[danmanmayer]

So it looks like they are releasing a Xbox with windows XP... hehe not quite but still entering the low end computer market, isn't something i would have expected from microsoft. Perhaps this is so they can get more PC's in schools with a computer that cheap it seems like that might give windows a good chance at forcing itself into schools around the US. I don't think microsoft should be expanding into the hardwear business when others are leaving and until they have all there anti-trust suits finished. This is something everyone would love to use for monopoly charges. But with a $40 billion in loose cash microsoft really should expand into new markets. It is just so risky for them to make any more money than they already do right now.

[CESkins]

Hmmm...looks like MS is forging ahead with their goal to "get a PC in every home" and the low end market is wide open. Of course MS wants to make sure that they indoctrinate everyone into the Windows world...given their flattening growth, it's one way to continue expanded. Should be interesting to see how the Justice Dept views MS now when they make the hardware, software, and OS.

[Dave Conger]

I wonder how Intel views this. They actually might not care at all, though I don't see why Microsoft couldn't use the HUGE stockpile of old P3 chips that Intel gives away for a tax write off all the time. I guess computers are kind of like the tobacco of the 21st century huh. Manufactures try and get you hooked with a cheap low-end model so you will get addicted and want to upgrade.

[T-Will]

I wonder if this will be one of the ways for MS to get the Palladium insfrastructure into more PC's...

[Xenosaiyan]

Just a continuation of Microsoft's plan to take over the world! :twisted:

Wouldn't it be interesting if they took over Dell's place as the top PC manufacturer. Or ugly, however much you like them.

[Tierran]

Very interesting. Never saw this coming from MS, but kinda cool. After I got crammed a Dell down my throat a couple years ago there's no way I'd go with them again ;) But I build my own computers usually (as I will be at the end of the summer) so I'll just look at them in Best Buy :)

[Sslixtis]

Why a crappy Via chip is what I want to know? Maybe this is a good way to throw money away for a tax break? I forsee dismal failure on their hardware foray. Atleast I hope and pray :wink: Even the X-Box has a more powerful Intel P3 733Mhz chip. :roll: Sic 'em Dell.

[klinux]

I have a PC at home that uses the VIA C3 chip (933Mhz). It literally is a cool chip - it does not have a CPU fan at all!

Sure, you and I who are encoding Divx or playing Quake may want the latest Intel/AMD chips but most people do not need or harness the power of even a PIII for their everyday taks.

[Registered]

[conspiracy theory on= 1]
Maybe that's the start for "Palladium", they get the assembly lines running now,
so its easier to switch to "enhanced" chips later on.
Incidently, it looks like Mykotronx, the "clipper" chip people are hiring...
[var 'danger' set high]
[leave country = true]
[conspiracy theory off]

-or not !
:D

[Jonathan1]

Ya right. And what is going to be the benefit behind a MS system? It works for all of MS's software. Now try using other software and what happens? CRASH CRASH CRASH. Or copyright protection or some other system of keeping you from doing what you want with your system. I'd rather go back to DOS then use one of MS's systems. Heck I’d rather go apple. 8O

[Dave Conger]

I wonder if this idea is still in development or much further along. I think Microsoft might try to build in to many special features to Windows which would make the PC still a decent idea for someone that uses there PC for very little, but horrible for anything else.

It is funny that Jonathan brings up going to Apple, since doesn't think make Microsoft Apple like? Now they produce the software and hardware just like Apple.... though at least i386's have licenses and hardware competition unlike Apple.

[Sslixtis]

I suppose it all depends on who you want to rule the world Steve or Bill :wink:

[Kre]

...Perhaps this is so they can get more PC's in schools... with a computer that cheap it seems like that might give Windows a good chance at forcing itself into schools around the US.

Thats definitely true. There are so many benefits to offering a really inexpensive computer to the masses.


Hmmm...looks like MS is forging ahead with their goal to "get a PC in every home" and the low end market is wide open. Of course MS wants to make sure that they indoctrinate everyone into the Windows world...

I agree with this, too. Theyve always said they wanted this, and this is the way to do it. The vast majority of people dont have much money, but for three to four hundred dollars, there arent too many people who couldnt swing that or quickly save up for that in some way.


I wonder if this will be one of the ways for MS to get the Palladium infrastructure into more PC's...

This could certainly be true. And because Palladium involves an even more customized processor design than usual, perhaps this new partnership MS has developed will give them more control over how these design concepts are integrated. Or perhaps this new partnership just gives them more say in processor design than they have with Intel. Maybe they just want to test this whole Palladium thing out by giving it a trial run with cheaper machines before going all out with higher end machines. Who knows...


Ya right. And what is going to be the benefit behind an MS system? It works for all of MS's software. Now try using other software and what happens? CRASH CRASH CRASH. Or copyright protection or some other system of keeping you from doing what you want with your system. I'd rather go back to DOS then use one of MS's systems. Heck I’d rather go apple. 8O

Well as much as I hate to say it, this is certainly a possiblity with MS based hardware. I certainly hope they wouldnt do that... theyd be complete morons to do so. Not to mention, theyd put about a thousand nails into their coffin, as far as this venture is concerned, and theyd really give themselves a horrible reputation. Yeah, theyre going to have to get this one right the first time, or theyll strike out and never get another chance.


One thing to keep in mind too, is that this could just be an experiment for MS to see just what kind of response they get from educational facilities, businesses, and consumers. And the cheapest way for them to do this initially is to start out with lower end machines. Maybe their plan is to eventually get into the mid and high end markets as well down the road. Maybe their goal is to eventually produce Tablet pc`s and handhelds... who`s to know. You know Bill and his vision. It extends pretty far and the sky`s the limit, with the money to back it up.

If these machines really work and work well, theyll put a massive dent in other manufacturers markets by stealing sales from mid and high end markets, because why spend twelve hundred dollars or more on a system if you can get similar performance for half or one third that price? Of course, then we have to ask whether there is another party involved in this partnership who hasnt been named yet. And will these systems include monitors, or is this just the price of the tower?

So many questions. Im really eager to see how this all plays out and exactly what kind of role MS hopes to play in the hardware market. Of course, we`ll never know every trick up Bill`s sleeve.

Owning the leading OS`s, browser, ISP, productivity suite, communication apps, financial software, possibly TCPiP, security and monitoring software built into the OS`s and CPU`s, and now hardware. Geesh... makes you wonder what kind of picture this is painting. Just what exactly IS in Bill`s vision?

[st63z]

So what kind of money will MS be making (or rather, not making) from licensing their software on these machines?

I mean, when I consider full retail WinXP Pro for, what, 200 bucks, and these WinXP machines supposedly will be selling for as low as $300... :) I imagine MS would also load up one of their Office suites and some of their other commercial software. But, I guess since this venture will be jointly owned by MS, they can just load up all these software for free, but then (aside from more monopoly fodder), won't all the standard OEMs raise hell about this (about how they're paying good money to license MS software)?

[Dave Conger]

Haha, XP Pro on these machines...that is a good one. Since these will be low-end machines, XP Home will work "fine." And low-end machines won't get Office Premium, probably just a Office Standard or maybe even MS Works with Word. MS will probably make little money with these machine, I think their goal is to expand the upgrade business.