Business, Companies, Microsoft, Software Programs

UPDATE – RUMOR: Microsoft jacks up Windows 7 prices

German site Windows Secrets claims that Microsoft has set prices for Windows 7 SKUs (Stock Keeping Unit). This should be the final nail in the coffin that Windows 7 will come out in winter. My estimate is that W7 will debut in August for the Back 2 School 2009 period, not in November ’09 or January ’10. If we compare the launch prices for two operating systems, we can see that Microsoft significantly changed the prices when compared to Vista launch prices:

  • W7 Starter Edition – 199.95 vs. 99.95
  • W7 Home Premium – 259.95 vs. 159.95
  • W7 Professional – 299.95 vs. 299.95 (Vista Business)
  • W7 Ultimate – 319.95 vs. 399.95

If we compare the launch prices for two operating systems, we can see that Microsoft jacked up Starter Edition by $100 when compared to Vista Starter Edition, Home Premium is jacked up by the same amount. Professional (Business) Edition remained the same, while Ultimate got cheaper by 80 bucks. The differences become even more interesting if we take a look at current situation – roughly a year ago, Microsoft cut the Vista prices by as much as 20%.

Following is a comparison between actual prices:

  • W7 Starter Edition – 199.95 vs. 52.99
  • W7 Home Premium – 259.95 vs. 129.95
  • W7 Professional – 299.95 vs. 299.95 (Vista Business)
  • W7 Ultimate – 319.95 vs. 319.95

Now, the differences are even greater. You will pay almost $150 more for W7 Starter Edition, exactly twice the much for Home Premium (single W7 Home Premium box equals two Vista Home Premium boxes), while Professional (Business) and Ultimate remain the same.

Judging by what we are seeing now, the wave of positive PR should yield in additional hundreds of millions dollars, since Starter and Home Premium are most sold versions with netbooks and notebooks. This will put additional pressure on notebook manufacturers and you can expect that those manufacturers will be forced to offer cheaper components inside their computers in order to meet up for these jacked up prices. OEM pricing will differ, but don’t expect wonders.

one benjamin franklin.

The value of good PR for Windows 7? One Benjamin Franklin.

If you ever wanted to know what is the value of positive reviews from journalists around the world – the answer is somewhere between $80-150 per retail box. Looking it from othe other side, this can also be interpreted into the cost of negative reviews.

UPDATE: February 9, 2009, 15:02 CET – ArsTechnica posted a retraction of this rumor. As usuall, I will state that this story was a rumor to begin with, and we won’t know the truth until Microsoft officialy release the prices. You can expect MSFT to disclose pricing when W7 enters RC-1 stage.