Well, Microsoft's new operating system will be priced at $239 according to a price posted at Amazon.com, which is taking pre-orders for the Windows Vista operating system as of yesterday. With all the different versions of Windows Vista (7+, right?), the $239 price will be for Windows Vista Premium, with the price for Windows Vista Basic at $199 and Windows Vista Business at $299. So, the bare minimum for a new Windows Vista operating system come release time will be $199, for the most basic functionality in the new operating system.
Is this too much dough for an oft-delayed operating system? Well, comparatively, these prices are just about the same as the existing WindowsXP Home and Professional operating system versions, which debuted over five years ago and have been upgraded with two large service packs (bug fixes and feature enhancements) since that time. In fact, the last WindowsXP service pack was hailed by Microsoft as akin to a completely new operating system software release because it was so large and addressed so many things.
The real question is if consumers will opt to buy into Windows Vista, since WindowsXP does a pretty good job for most of us. Unless the newer Windows Vista comes pre-loaded on a new PC, will you opt for purchasing the new operating system when it debuts in 2009? Oops, I mean 2007?
If you're a MSFT shareholder like me, let's hope that the value Microsoft has added (and should advertise heavily) will justify the prices it wants to charge. Convincing customers to upgrade will be a tough sell, so Microsoft's marketing team now has the challenge. Let's see what they do with it.
[Disclosure: I own MSFT shares as of 8-30-06]



Reader Comments (Page 1 of 1)
8-30-2006 @ 12:44PM
tom barta said...
Let us be serious here: not more than 5% of Windows users will BUY Vista, tops. From what I am hearing, it sounds like an incremental upgrade to XP. It will come bundled on new PC's, so anyone buying a new PC will get it that way.
8-30-2006 @ 5:58PM
Mike Bijon said...
Vista is a bit more than an incremental upgrade, although most of the added features are available as free software to anyone who cared enough to search for it.
What will be interesting to see is how many Windows users will buy the off-the-shelf/upgrade versions of Vista - compared to haw many Mac users have been buying the truly incremental OS X upgrades.
8-31-2006 @ 9:06AM
tom barta said...
"What will be interesting to see is how many Windows users will buy the off-the-shelf/upgrade versions of Vista - compared to haw many Mac users have been buying the truly incremental OS X upgrades."
My personal philosophy is to never buy an OS upgrade unless it truly addresses a problem you have.
Keep in mind, AAPL makes most of its revenue from hardware, unlike MSFT, whihc relies on software.