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February 29, 2008

MS Cuts Vista Prices for XP Upgrade Versions

I posted a comment on the blog yesterday about Microsoft's record fine by the European Union and suggested they raise Vista prices to pay it off.  In one day after that bit of sarcasm over the price of Vista, Microsoft announced that they will reduce the price of the OS for boxed copied of upgrade versions.  This is not only an attempt at moving more copies of the operating system, but to get more people off of XP.  While Microsoft says XP support will end in 2009, they actually had to extend XP sales by demand of OEMS because customers weren't ready to give up on something that works (XP) compared to something that wasn't ready for prime time (Vista). 

Remember, a Vista upgrade cancels the underlying XP license, unless one goes through some specific steps in the process to avoid that.  However, Microsoft says that would violate their upgrade license terms even though they plan on not penalizing anyone so far for using it.  Of course, they would be penalizing themselves and their customers if they did something about that.  Imagine trying to reinstall the upgrade copy on a machine where the underlying XP license was canceled.  That's not a happy scenario.

The price break coincides with the release of Vista SP1.  Curiously, large manufacturer rebates on boxed copies of Vista versions were spotted at Costco and other places running through March 15.

February 29, 2008 | Permalink


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