Microsoft Drops Bulk License Price for XP to $15 Page: 1
Microsoft Drops Bulk License Price for XP to $15
Microsoft has reportedly dropped the bulk licensing price of its Windows XP operating system for netbooks in a bid to outrun Linux in the netbook race. Citing an unnamed source, the Wall Street Journal reported that the software giant is selling netbook licenses of Windows XP for just $15.
While Microsoft has never revealed its bulk pricing for netbook licenses, if the report is to be believed, a copy of XP home now costs less than one third of a copy of Windows Vista, which is reportedly available between $50 and $60 for bulk purchases.
When ASUS launched its Eee PC in late 2007, Microsoft suffered a major blow as Linux, with its free licensing became the dominant operating system for netbooks. While Windows continued to be in use, it became a premium option due to its high license cost. With the price drop, Microsoft is hoping to change this and once again become the OS of choice for PC and netbook manufacturers.
Another reason that partially explains this change is the upcoming Windows 7 release; Microsoft would be hoping to position its Starter Edition as the foundation for netbooks. While the new OS will be priced higher, it will also be the first to receive upgrades to more expensive editions. However, the company might face certain issues with its Windows 7 Starter Edition, such as the limitation of allowing only three apps to run at the same time. This is one shortcoming that XP or Linux currently does not have.
The increasing popularity of highly portable netbooks and the significant decline reported by Microsoft in Windows revenues can also be considered important factors. But as of now, the price cut for Windows XP is very much real and hopefully should provide some positive headway for Microsoft.