Windows Expensive to Put on Netbooks? Not Really

By  |  Monday, April 20, 2009 at 9:10 am

In what is definitely a defensive move, sources for the Wall Street Journal indicate that the company has only been asking for $15 per copy of XP intended to be installed on netbook computers. That is as little as 25% of its typical fee for notebooks and desktops.

With Linux a popular choice for those looking to avoid Microsoft’s high royalty fees, Redmond apparently felt the window of opportunity closing. Thus it has begun an agressive push to remain dominant in this space as well, and it meant taking a hit on profit margins for its Windows software.

Netbooks may have conribute to the 8 percent decline in revenues in the division, although to be fair that may include customers deciding to pass over Vista and deciding to wait it out for Windows 7.

Speaking of Win 7, how will that handle netbooks? Microsoft is considering a policy of only allowing three concurrent applications. While it may seem unreasonable for them to do so, consider the fact that these devices for the most part do not contain top-of-the-line hardware.


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3 Comments For This Post

  1. Jeff Says:

    I’d pay $16 or more for a distro of Linux on a netbook.

  2. Tom B Says:

    Gee– XP for $15; Linux for free. LINUX = better performance, stability, security, power management. TOUGH CHOICE (Not!).

  3. Ian D. Nock Says:

    Microsoft is pure insane for even thinking about limiting capability through software when the hardware is capable. Please remember that Netbooks are hardware that was good just five years ago, and most people’s actual requirements have not changed except is size and battery life since then (unless you are talking about gamers and graphics intensive users)