Microsoft to Sell Windows 7 for 8% Less Than Vista

[Jason Dunn]

<div class='os_post_top_link'><a href='http://www.iii.co.uk/news/?type=afxnews&articleid=7391104&subject=general&action=article' target='_blank'>http://www.iii.co.uk/news/?type=afx...&action=article</a><br /><br /></div><p>I was looking at <a href="http://www.google.ca/finance?q=NASDAQ:MSFT" target="_blank">Microsoft's stock price on Google Finance</a> (oh, the irony), and saw this <a href="http://www.iii.co.uk/news/?type=afxnews&amp;articleid=7391104&amp;subject=general&amp;action=article" target="_blank">little line</a> that caught my attention:</p><p><em>"Microsoft Corp on Thursday said it will sell the standard home-user version of its new Windows 7 operating system for 8 percent less than the comparable version of its Vista system, as the global downturn hits spending on technology."</em></p><p>This is the first I've heard of any pricing information about Windows 7 - this 8% drop would make the approximate prices as follows based on Best Buy pricing today for Windows Vista:</p><ul><li>Windows 7 Home Premium Full: $220 USD</li><li>Windows 7 Home Premium Upgrade: $119 USD</li><li>Windows 7 Ultimate Full: $294 USD</li></ul><p>That's just a theoretical price though of course - because today you can buy Windows Vista Home Premium Upgrade from Amazon.com for $83.57 USD, far less than the $129.99 USD Best Buy is charging. In the XP to Vista transition era, the vast majority of computer users didn't upgrade their operating systems. Most people getting Vista bought a new PC. Windows 7, however, is going to be a different beast - if someone has a reasonable Vista-era computer, they'll have all they need to run Windows 7. So if Microsoft wants those people to upgrade to Windows 7, the upgrade pricing has to be reasonable. I'm not sure 8% is going to cut it. What do you think?</p><p><strong>UPDATE:</strong> <a href="http://www.engadget.com/2009/06/25/windows-7-official-pricing-announced-limited-pre-orders-start-t/" target="_blank">Looks like the pricing details on Windows 7 are now public</a>. $119.99 (Home Premium), $199.99 (Business), or $219.99 (Ultimate) are the upgrade prices for XP or Vista users. Those fall in line with the prices I estimated above. That strikes me as too expensive, especially in this belt-tightening economy we're in. I think $89 USD would have been a much more attractive upgrade price. There's going to be a limited Window of pre-order pricing at $49 USD for the Home Premium upgrade, starting on the 26th of June, but how many people are going to take advantage of that? I'll post more news about that when I find out details.</p>

[Phillip Dyson]

Where can these purchases be made? Online?
Do I have to go to a brick and mortar to pre-order?

[Dyvim]

So this fall I can upgrade one of my PCs to Windows 7 for $119 or more, or I can upgrade one of my Macs to Snow Leopard for $29 or both of them (up to 5 actually but I only have 2) for $49. Which do you think I'm going to do first?

[Jason Dunn]

Some more information about the upgrade program here:

http://gizmodo.com/5302371/windows-7-pricing-good-news-mostly?skyline=true&s=i

[Jason Dunn]

So this fall I can upgrade one of my PCs to Windows 7 for $119 or more, or I can upgrade one of my Macs to Snow Leopard for $29 or both of them (up to 5 actually but I only have 2) for $49. Which do you think I'm going to do first?

I hear you, but let's be honest here, Apple is doing this just to stab a fork in Microsoft's eye over the "Laptop Hunter" ads that are all about price. Apple is likely losing a bunch of money on this, and it's not sustainable over the long term.

On Apple.com the normal price of Leopard is $129. There seems to be no upgrade - si that right? You just buy the OS "new" each time?

Anyway, check out the Gizmodo link I posted in this thread - you'll be able to order Windows 7 Home Premium upgrade for $49.

[doogald]

Snow Leopard is also $129 if you own Tiger (or earlier, though I cannot believe that Snow Leopard would run on a system that wasn't already running Tiger.)

Mac OS at retail are all upgrades, as you only buy the OS when you are upgrading it - the OS comes with the computer each time and, unlike Windows, you cannot install Mac OS on a bare PC (legally). But, based on the pricing for Tiger vs. Leopard users, I think that Apple is doing a combination poke Microsoft in the eye and (IMHO) acknowledging that much of the technology in Snow Leopard they meant to get into Leopard in the first place but rushed it out (both because they moved programmers over to the iPhone OS project and to beat Vista to market, again in part to tweak Microsoft in their ads.)

[Dyvim]

I hear you, but let's be honest here, Apple is doing this just to stab a fork in Microsoft's eye over the "Laptop Hunter" ads that are all about price. Apple is likely losing a bunch of money on this, and it's not sustainable over the long term.
You might be right, but I could care less about why they're doing it- I just know one is more affordable than the other. A few years from now when the next round of OS upgrades comes out, maybe the prices will be different, and I'll make a different purchasing decision then.

[Jason Dunn]

You might be right, but I could care less about why they're doing it- I just know one is more affordable than the other.

It's only considered affordable if you side-step the issue of Mac pricing in the first place. :D Apple makes their hefty profits when you buy the hardware...

[Dyvim]

It's only considered affordable if you side-step the issue of Mac pricing in the first place. :D Apple makes their hefty profits when you buy the hardware...
True, true - but what we're talking about is OS upgrades. Windows 7 and Snow Leopard will be included in the price of computers sold this fall. What we're talking about is upgrade pricing for existing hardware. My 2 Macs were expensive, yes, but they're paid for now (as are my 5 Windows PCs), so what will affect my decision on whether to upgrade any of them or not is the price of said upgrades. For this Fall, clearly the Mac upgrade is much more affordable than the Windows upgrade. You're probably right and this is a once in a lifetime anomaly, but I'll take what I can get!

[Lee Yuan Sheng]

Ok, Mac's aside, what about those of us with more than one machine? I'm not fancying paying US$200-300 per machine!

[Jason Dunn]

For this Fall, clearly the Mac upgrade is much more affordable than the Windows upgrade.

Well, $29 vs $49 isn't HUGE. You did see the part about the $49 pre-order upgrade discount on Windows 7, right? :)

[Jason Dunn]

Ok, Mac's aside, what about those of us with more than one machine? I'm not fancying paying US$200-300 per machine!

$200 to $300 per machine? Where would you get that price from? A new computer without an OS that you built yourself? Or...? If you miss out on the pre-order you'd be paying $129 USD or so for Windows 7 Home Premium Upgrade.

I do agree that Microsoft needs a "family pack" licensing of some sort, though the $49/upgrade license is damn cheap...

[Dyvim]

Well, $29 vs $49 isn't HUGE. You did see the part about the $49 pre-order upgrade discount on Windows 7, right? :)
For Windows 7 Home Premium- all my machines run either XP Pro or Vista Ultimate. Ok, I probably don't need Windows 7 Ultimate (although it would be a letdown to upgrade Vista Ultimate to 7 Pro) but I do need the Pro versions. So that'll run me $99 on pre-order per machine. So long story short, I'll probably never upgrade my copy of Vista Ultimate (who could afford to?) and at most might upgrade 1 copy of XP pro to 7 Pro. Maybe Microsoft just doesn't care and wants you to upgrade by purchasing new hardware (which I will certainly do over time), but pricing like that isn't going to spur mass business or consumer adoption of their new OS.

[Lee Yuan Sheng]

$200 to $300 per machine? Where would you get that price from? A new computer without an OS that you built yourself? Or...? If you miss out on the pre-order you'd be paying $129 USD or so for Windows 7 Home Premium Upgrade.

I do agree that Microsoft needs a "family pack" licensing of some sort, though the $49/upgrade license is damn cheap...

My current machine does not have any OS. I'm currently using the Windows 7 RC1 build. The notebook does have a Vista Home Basic license, but I transplanted an XP OEM license to it instead. Not sure how the activations are going to work.

[Phillip Dyson]

I just pre-ordered 3 upgrades for Home Premium. At $165 USD (including shipping and tax), It just a little more than one upgrade at regular price.

I was tempted to make one of them a 7 Pro, but I could think of a good justification.

Currently I have 2 Vista Home Premium notebooks, one XP Pro notebook and two XP Pro desktops. One is my HTPC (SageTV) and the other is my file server. I'll probably eventually replace the latter with a WHS box.

[Jason Dunn]

Here's the $49 offer:

http://www.digitalhomethoughts.com/news/show/94262/

[Jason Dunn]

For Windows 7 Home Premium- all my machines run either XP Pro or Vista Ultimate. Ok, I probably don't need Windows 7 Ultimate (although it would be a letdown to upgrade Vista Ultimate to 7 Pro) but I do need the Pro versions. So that'll run me $99 on pre-order per machine.

OK, I see your point. Guess this offer isn't for you then. :)

[Jason Dunn]

My current machine does not have any OS. I'm currently using the Windows 7 RC1 build. The notebook does have a Vista Home Basic license, but I transplanted an XP OEM license to it instead. Not sure how the activations are going to work.

Well, no offense, but eventually everyone (who wants to be legitimate at least) has to pay for an operating system and it sounds like you've gotten off pretty easy thus far. ;) And, as always, there's nothing saying anyone HAS to upgrade if they're happy with their current OS...though I guess you'll need to put something on the machine running 7 RC1.

[Lee Yuan Sheng]

Well, doesn't help Lenovo used a Vista Home Basic install on the Thinkpad. Good chance I'll have to pay full retail. I just realised there's no word what the Windows 7 Upgrade will allow what installs to upgrade FROM.

As you've mentioned, this isn't cheap either way. I'll see what promotions they'll have in store in my region. MS is actually quite lax when it comes to sales in piracy-infested regions. :P

[Jason Dunn]

I just realised there's no word what the Windows 7 Upgrade will allow what installs to upgrade FROM.

It should upgrade from any version of Windows XP or Windows Vista. That's what I've read.