Microsoft chops Vista retail prices

In what may be an unprecedented decision, Microsoft said Thursday that it plans to lower the retail prices for several flavors of Windows Vista.

For those in the U.S., Microsoft is cutting prices only on the higher-end versions of Vista, and only for the upgrade version used to move from an earlier copy of Vista. The suggested price for Vista Ultimate drops to $219 from $299, while Home Premium falls to $129, from $159.

Other developed markets will also see price cuts, while in emerging markets, Microsoft is eliminating the distinction between full and upgrade versions of Home Basic and Home Premium as it attempts to convince more users there to use genuine software.

Analysts were surprised by Microsoft's move.

"I can't remember a big price cut like this," said analyst Chris Swenson, who tracks retail software sales for NPD Group. "It's very unheard of."

Microsoft finalized Windows Vista in late 2006, but held back its retail launch of the product until January 2007. It has sold more than 100 million copies, largely on the back of a strong overall PC market, but retail sales have significantly trailed those of XP in its early days and Vista has received a number of critical reviews.

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games4fun4187d ago

maybe fewer people are adopting than we think, this is based on the fact that if they were the only os people were buying they would keep the prices where they are at, this just shows people dont like to pay for a subpar os that eats up to much memory/ram

Yi-Long4187d ago

... who were already paying much more than the rest of the world for Vista!?

How about offering free upgrades to 64 bit Vista, for all the people who bought a new PC which only had a 32 bit OEM, Microsoft!?

diatom4187d ago

Lower the prices?

That worked to Toshiba too.

Maybe they should fix it instead...

AuburnTiger4187d ago

Your comparison is a little off. People wanted the ps3 but it was to damn expensive, so when Sony cut the price there was a huge spike in hardware sales. The problem with Vista isn't price, it's compatibility and the fact that people like XP too much(why change a good thing) All I'm saying is don't expect the same spike Sony had.

Lionsguard4187d ago

When are they going to start handing out money to us to take it off their hands? It's the only way I'll pick it up.

DevastationEve4187d ago

1) during the average user's experience, the graphics chip will only get a work out when either a game/sceensaver/visualization is loaded, the entire GUI is still renedered through its 2d engine.

2) desktop has become more flexible, although the actual implementation is more gimicky than useful. as people create uses for Aero, we will start to see how indespensible a composited interface can be.

3) the network and sharing center is WAAAAAAYYY better than trying to guess wether your network is public or private in XP, plus there's the visualization that it provides for your current network setup.

4) xp is probably the single greatest piece of software that microsoft has been fortunate enough to develop, and in seeing how it had progressed over time from its shifty begining, I foresee Vista achieving the same success as it matures through revision.

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