Microsoft cuts Windows Vista retail prices

By on February 29, 2008, 6:02 AM
Update: Price cuts detailed below seem to apply mostly to "Upgrade" versions. Because Microsoft will not cut prices in the same degree worldwide they seem to have refrained from specifying the exact pricing even for the U.S. in their press release. What is clear however, is that they intend to make price cuts effective at the same time as SP1 is (officially) released.

Microsoft announced today price reductions across the board for retail copies of Windows Vista. This an uncommon practice for the software giant, who has decided to lower prices of most boxed Vista editions by 20% only a year after the OS was released. Vista Ultimate version will get a discount from $299 to $219, while Home Premium edition falls to $129, previously it was $159.

Despite of the fact retail boxed copies of Vista only represent ~10% of its total sales, Microsoft hopes this will incentive users to upgrade now rather than waiting until they get a new PC, in which case the machine would most likely come pre-installed with the software. As part of the announcement, Microsoft also said they will lower prices in 70 countries later this year along with the SP1 release, and that in emerging markets they will stop selling "upgrade" versions of the OS completely. No further clarification has been made regarding OEM copies and if these will also receive the cut, too, but it's somewhat safe to assume this will be the case eventually.

Though it may be completely unrelated, the news came only days after some controversial email exchange between Microsoft execs about Vista was made public, making for a bit of a scandal, especially in online circles.




User Comments: 15

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eldernorm said:
Microsoft, Your pain, their pleasure. :-( When their own executives had issues with the product right up front and the "fix" was to do more advertising and to downgrade the capacities to let more low level computers "work" with VISTA, ..... well, I am just going to look at a new Mac. I hear that they do not have to put up with this level of poor customer treatment. en
icye said:
Microsoft from day one of the Vista launch has made customers confused at which version is right for them. Basic, Home Premium, Business, Ultimate... And for most, there are no real benefits to running Vista which is slower by 10% compared to Vista, WGA is a joke, UAC is a made into a nanny for your computer, and there are more problems that are too numerous to list. SP1 will be a real nightmare for Microsoft if it messes up a lot of computers that has Vista installed.The different versions may seem good but it doesn't help the consumer out because there are no real benefits to Ultimate compared to Home Premium. Business uses a file system that people cannot run the basic Diskeeper program on and need the Diskeeper Pro. There is the Vista capable fiasco that is going on. The bottom line is that Vista gives minimal returns on the investment consumers made in buying it. I use it because Vista is the latest Microsoft OS but that doesn't mean I like it.[Edited by icye on 2008-02-29 12:18:42]
windmill007 said:
Ya I agree. Should just be a home and business version. I don't think this price drop will help. They just need to hurry up and release the next windows and hope it actually brings something to the table that people are willing to pay for.
techbomb06 said:
Ok the truth is that everyone said the same things about windows xp. Telling everyone to stick with windows 2000 it is better. Everyone knows it always gets worse before it gets better. After the 2nd service pack they will have it working to par. The customer should always check and ask questions from several repair shops to find out which one is best for them.
PanicX said:
[b]Originally posted by techbomb06:[/b][quote]Ok the truth is that everyone said the same things about windows xp. Telling everyone to stick with windows 2000 it is better. Everyone knows it always gets worse before it gets better. After the 2nd service pack they will have it working to par. The customer should always check and ask questions from several repair shops to find out which one is best for them.[/quote]I disagree. For users switching from 2000 to XP, there was little to no hesitation. The issue was those switching from 98/ME to XP as they're many compatibility issues. Vista is much more like the 98 to XP scenario in terms of incompatibilities, however XP also had a nifty option to run programs in "compatibility mode" which would allow many incompatible 98/ME programs to run normally. Unlike Vista where many programs are just broken. Maybe I need to install Vista on my main system to get more hands on with it. But every time I work on a Vista system I grow to dislike it more and more. From the constantly nagging UAC to random problems that the only solution for is a full OS reinstall. I get heartburn just thinking about it.
techbomb06 said:
The UAC is not a problem just go into the msconfig and disable it. You do strike up a good point about Mistake Edition (ME).
Rick said:
No, XP > Vista isn't what 98 > XP was like, in most respects. In all fairness, it is somewhere in bewteen 98 > XP and 2000 > XP... And really not far off from 98 > Me[quote]The customer should always check and ask questions from several repair shops to find out which one is best for them.[/quote]Sounds good on paper, but your average 'repair shop' is looking to make a quick buck. If you have a place you TRUST, then by all means... But I think you're better off asking a knowledgeable friend (if possible).Mac OS definitely has one up here. MS should finally get it straight and realize that people only want one version. They don't want Vista with Aero stripped out of it or a Vista with different licensing terms. They want a full OS at a decent price and that should be the new direction of Microsoft. Affordable, useful, efficient and versatile software from a kinder, gentler company. -- MS is going to have to do this or face extinction in the OS market.
Mictlantecuhtli said:
I wonder what kind of price cuts there will be in Europe. Windows prices here are nearly twice the prices in the US.[url=http://www.amazon.co.uk/Microsoft-Windows-Vista-Ulti
ate-PC/dp/B000KCIA5A/ref=sr_1_1?ie=UTF8&s=software&qid=120
387770&sr=1-1]Vista Ultimate retail in UK, 685 USD[/url][url=http://www.amazon.com/Microsoft-Windows-Ultima
e-VERSION-Version/dp/B000HCTYTE/ref=pd_ts_c_th_10/002-5944
64-7454427?pf_rd_m=ATVPDKIKX0DER&pf_rd_s=right-3&pf_rd_r=1
DR7JGJ0A5HZFMBRAT7&pf_rd_t=101&pf_rd_p=294260401&pf_rd_i=2
9653]Vista Ultimate retail in US, 330 USD[/url]
Per Hansson said:
4795SEK in Sweden, which is $777 with todays exchange!!![url]http://www.komplett.se/k/ki.aspx?sku=330371[
url]
Rick said:
[quote]Vista Ultimate retail in UK, 685 USDVista Ultimate retail in US, 330 USD[/quote][quote]4795SEK in Sweden, which is $777 with todays exchange!!! [/quote]Consider those prices punishment for all of those fines the EU keeps imposing on Microsoft. ;) I imagine MS considers the 'cost of doing business' in the EU as very, very high...
GEOFRS said:
Microsoft is not reducing prices to the UK where VISTA is double the US cost.Microsoft is doing it's best to get people there to change to MAC and LINUX... me for one!!I HAVE HAD TO BUY THREE COPIES OF XP through losing motherboards for various reasons.But no more Microsoft O/s' ...there is a very good Linux system called PClinuxOS which is far better than most O/s's thats my new choice.Regards all. Geofrs
tedster said:
you should not have had to buy 3 copies of xp for losing mobos. All you had to do was re-register with M$ by calling their phone #.
9Nails said:
[b]Originally posted by windmill007:[/b][quote]Ya I agree. Should just be a home and business version. I don't think this price drop will help. They just need to hurry up and release the next windows and hope it actually brings something to the table that people are willing to pay for.[/quote]I don't even agree with that Windmill. There should only be ONE version! What is the point of two distinct versions? Is it to split between the "have" and the "have-not's"? It's certainly not for stability since Vista Home and Business run identically at the core level. And there certainly is no reason home applications and business applications cannot mingle on the same platform. Many office users will enjoy Media Center for photographs and some home users will appreciate an ability to Fax and Scan.To be totally on point with my argument, one version will mean that the typical office worker can go home, work on a document and have the same experience as they have in the office or that the Home user/student can join the work force with a full understanding of all the features available on the OS. This is how it should be especially since there is no security differences between Home Premium and Business editions. The split between the two versions are minor and can be lumped into the same SKU at the lower cost of the Home Premium edition. This is marketing madness to split features into different channels to compete for additional dollars.I certainly don't see an "Apple OS X Business" vs. "Apple OS X Home" or any Linux home vs. business editions. The most notable distinction for other operating systems is for the support contracts. (Where some flavors of Linux come with a "non-supported" free option meaning that you get the same Linux, but have to use your own tech support channels for help.)
Stick'o Ram said:
Exactly why do we need two versions for, it's pointless, if microsoft was indeed consumer friendly they wouldn't even have two versions available, just one. Who needs the extra headache of having to choose. An O/S should just be an O/S not a car, do i want leather seats? Everybody should just be the same, not only would they cut down on Customer Services, it would make compatibility that much easier.
Mictlantecuhtli said:
More information about [url=http://www.computerworld.com/action/article.do?command=
iewArticleBasic&articleId=9065960]the price cuts in the EU[/url].I'll believe it when I see the new prices in the stores here...
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