What's up with the Microsoft Corporation (NASDAQ:MSFT) pricing strategy on the many versions of the soon-to-be-released Windows Vista operating system? Some tend to think that the lower-end version -- Windows Vista Home Basic -- is so low-end and handcuffed that it's not going to sell at all. And that may be fine for Microsoft, as the company may have created that loss-leader specifically for price advertising and nothing more. Companies have done this since the beginning of corporate commerce. Nothing to see here.But then that begs the question -- what is the "cheapest" version of Microsoft Windows Vista that customers will actually want to buy? If we dispense with the token "Home Basic" edition, we get a starting price point for Windows Vista "Home Premium" of roughly $240. That's almost as much as some lower-end PCs these days. And a lower-end PC these days is actually quite powerful and perfectly suited to most home and business tasks. Note that I didn't say "all," just most. The standard home user and the desktop business user can get by just fine (more than fine) with that $299 HP or Dell system.
Computer company Acer seems to think that Microsoft is plowing the fields of stupidity with its Windows Vista sales strategy. Are customers really going to shell out $240 for Windows Vista Home Premium if the basic version is perceived as not even an upgrade (in many respects) to Windows XP? Not sure about that, but many customers will buy PCs for the fact that Windows Vista comes pre-loaded. Will this cost PC manufacturers more? You bet -- and many are already upset.











Reader Comments (Page 1 of 1)
10-30-2006 @ 8:19PM
J. Michael Johnson said...
I have Windows XP (home) on both of my PC's. At the price of $240.00 I would not up grade what I have.
10-30-2006 @ 4:51PM
Andrew said...
I am off to the world of linux, I have already put Linspire on an old machine and was up and running in no time at all. The vista beta took nearly two hours load. I can get applications for all the major things I do without having to worry about WGA stopping me upgrade my kit.
10-31-2006 @ 2:06PM
Joe Ogiba said...
Get your facts straight before you write. Vista Basic upgrade is the same $99 price as XP uppgrade. Why would anyone purchase a full version unless then wanted to use it on an Intel Mac.
[url=http://www.microsoft.com/windowsvista/getready/editions/home_basic.mspx] Suggested upgrade retail price, $99.95 [/url] and [url=http://www.microsoft.com/windowsvista/getready/editions/home_premium.mspx] Vista Home Premium upgrade $159 retail price [/url]
11-02-2006 @ 10:01AM
salim said...
all xp users including me should be upgraded to vista by m soft for a soft orice preferably 50 dol.
11-04-2006 @ 10:46PM
Shomeir said...
I just installed Freespire (a free download) which comes with access to a library of 20,000 free applications. I love it!
11-16-2006 @ 2:20PM
Robert Atkinson said...
This is why more and more people have shifted to Linux. Why pay for something you can get for free?
I think this is an act of desperation. With these ridiculous prices they hope to keep the image that
they are the best and therefore worthy of these prices. I think Microsoft needs a reality check. Their
snubbishness has lost its appeal.