Two pieces of news have come out of Microsoft (NASDAQ: MSFT) in the last day. One is that the software company will cut the retail price of Vista. The other is that Microsoft knew that the specs for the new operating system encouraged users with slow machines to buy the software. Redmond was aware that Vista would not run well on low-end machines.
The price cut may be a sign of weakness. Microsoft says Vista has sold well, but many people have stayed with older versions of Windows to save money and because Vista has received mixed reviews. Performance problems on inexpensive machines has probably not helped matters.
The cuts are for consumer versions of the software. According to The Wall Street Journal, "The changes are seen as a response to the falling prices of new PCs, which made the software price seem disproportionately large in comparison to that of a new system with Vista installed."
That reasoning seems a bit thin. Reaction to the OS has been lukewarm. Apple's (NASDAQ: AAPL) new operating system has received better reviews and that may be helping the Mac take market share from PCs. PC companies may well have pressured Microsoft to drop prices.
A weak product is not something that a flagging PC industry needs.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
2-29-2008 @ 6:12AM
al coholic said...
I'm no expert, but my decision to use XP on a computer I recently purchased was because I was told my printer wouldn't work with Vista due to driver issues.
2-29-2008 @ 3:14PM
Invisible Hand said...
About a year ago, I was in the market for a laptop.
Pretty sure it would be an Acer, a Thinkpad or an HP, but it was less clear what OS I would get.
Vista was about to launch, and XP was still on the machines in the stores.
I told my wife, You watch, they’ll launch Vista and then jam them onto the existing XP laptops in the chains, which won’t run them right, and people will blame the OS and Microsoft.
That’s exactly what happened. WSJ is reporting that Microsoft lowered the technical requirements to help Intel hit its targets.
Now they’re whacking the price of Vista to make up sales.
Wonder if Intel shareholders will give some of the money they made that quarter to Microsoft shareholders, you know, as a gesture of solidarity.
Bullsh*t, total bullsh*t.
http://slapped.tumblr.com/
2-29-2008 @ 3:54PM
gumby said...
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wHY THE FAVOR??? DO I HAFTA BE A STUDENT. BLEECH!