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June 5th, 2009

Will the Windows 7 price be right?

Posted by Ed Bott @ 11:29 am

Categories: Licensing, Windows 7, Windows Vista

Tags: Best Buy Co. Inc., Microsoft Windows 7, Microsoft Windows Vista, Microsoft Corp., Microsoft Windows, Microsoft Windows Vista (Longhorn), Operating Systems, Software, Ed Bott

[Updated 12:20PM PDT with Microsoft comment.]

Engadget says they’ve unearthed a confidential memo from Best Buy that gives away some pricing information for Windows 7.

According to the memo, Best Buy will kick off its Technology Guarantee program on June 26. Beginning on that date, you’ll be able to buy a PC with Windows Vista Home Premium, Business, or Ultimate and get a coupon good for a free upgrade to Windows 7 when it’s released in October. That matches up with information I’ve heard as well and is consistent with how Microsoft has handled product launches in the past.

The other, more interesting detail is that Best Buy plans to pre-sell select versions of Windows 7 online, for a 16-day period that runs from June 26 through July 11. If the memo is accurate, you’ll be able to buy a Windows 7 Home Premium upgrade package for $49.99 and a Windows 7 Professional upgrade package for $99.99.

Several months ago, Microsoft’s General Manager for Windows, Mike Ybarra, told me that we we can expect “aggressive price points and some very good offers” when Windows 7 is released. This certainly qualifies on both standards. The comparable prices for Windows Vista are $129 and  $199, respectively, and the discounted prices at retailers like Newegg and Amazon typically knock only 10 bucks or so off the sticker. If Microsoft prices Windows 7 in line with Vista, the Best Buy deal represents a discount of 50% on Professional edition and more than 60% on Home Premium. Yeah, that’s aggressive.

Obviously, this limited-time promotion is lower than the average selling price that Windows 7 will command when it’s officially released. But I expect it’s only the first of many deals to come from Microsoft’s retail partners.

What else can we expect to see? Back in early 2007, Microsoft offered a so-called Family Discount for Windows Vista, which allowed anyone with a Vista Ultimate license to purchase two Home Premium upgrades for $49.99 each. I expect to see an improved version of the Family Discount this time around. If Microsoft wanted to aim directly at its archrival Apple, it could sell three Home Premium upgrade licenses (to be used only in a single home) for $199 or less.

Asked to comment on the contents of the Best Buy memo, a Microsoft spokesperson offered the following:

As announced earlier this week, we’re continuing to work with our retail and OEM partners to provide Windows 7 Upgrade Option programs and other offers to consumers interested in experiencing Windows 7, which will be publicly available on October 22nd. We’re excited to share additional details regarding these programs soon, but do not have additional details to announce at this time.

I’ve been told by other sources to expect additional details later this month and will pass them along when I receive them.

Ed BottEd Bott is an award-winning technology writer with more than two decades' experience writing for mainstream media outlets and online publications. See his full profile and disclosure of his industry affiliations.

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  • Talkback
  • Most Recent of 89 Talkback(s)
Ha ha ha ha ha
Yes, $120 is too much and $40 is just right. So if you can't get that $40 price, you will pay Apple $1500 for a Mac.

Riiiiiiight. Sheesh, try to make this stuff at least marginally believable. OK?... (Read the rest)
Posted by: Ed Bott Posted on: 10/20/09 You are currently: a Guest | | Terms of Use
So, what's your ideal price?  Ed BottZDNet Moderator | 06/05/09
?50...  Sleeper Service | 06/05/09
yes, I'll jump on those prices  eggmanbubbagee@... | 06/05/09
Ideal Price  DannyO_0x98 | 06/05/09
$50 will do it  nizuse | 06/05/09
$50 bucks for the Win7 Home Prem is fine to me  visualambrosia | 06/05/09
maybe  jeffk464 | 06/07/09
Homebuilts  merc2dogs` | 06/08/09
How much will it REALLY cost?  fr0thy2 | 06/06/09
So, do some research  Ed BottZDNet Moderator | 06/06/09
LOL! fr0thy2 done got Bott-pwned!  ericesque | 06/07/09
hum, ms pricing...  brokndodge@... | 06/07/09
$100 for Win 7 Pro upgrade is good if you can do a clean install  Randalllind | 06/07/09
Microsoft seems on target  Citizen Gkar | 06/07/09
Blasphemy!!  Worth2Cents | 06/09/09
Now, that was funny!  rs_jr | 06/12/09
good one Worth2cente  Citizen Gkar | 06/20/09
$50? maybe.... more & MS can forget it.  ThePoke | 06/09/09
Windows 7 pricing  BigD Out West | 06/10/09
No Not Good Enough  bishopsumo | 06/24/09
Here is my pricing strategy  Mr. Dee | 06/05/09
As long as there aren't 50% increases  Michael Kelly | 06/05/09
price is a mojor barrier in the us...  brokndodge@... | 06/07/09
Price is a barrier !  mik3 | 06/08/09
RE: Will the Windows 7 price be right?  nothingness | 06/05/09
You won't be able to  NStalnecker | 06/05/09
Pricing Strategy  Cosmo54 | 06/05/09
RE: Will the Windows 7 price be right?  msanto00 | 06/05/09
Last I Heard...  visualambrosia | 06/05/09
Lol ! Massive thread deletions!  nizuse | 06/05/09
cool  shellcodes_coder | 06/06/09
We try  Ed BottZDNet Moderator | 06/06/09
Why don't you guys ban them?  shellcodes_coder | 06/06/09
I've asked that again and again....  MGP2 | 06/06/09
Please contact me offline.  Ed BottZDNet Moderator | 06/06/09
Good idea.  nizuse | 06/06/09
Impractical  Ed BottZDNet Moderator | 06/06/09
A broken clock is right twice a day. But that doesn't mean...  ye | 06/06/09
I don't think it's necessary  nizuse | 06/06/09
History is not on your side.  ye | 06/06/09
Hardly...  MGP2 | 06/06/09
Small correction  nizuse | 06/06/09
it that why you keep deleting my on topic posts with links back to my own..  brokndodge@... | 06/07/09
I can't delete anything  Ed BottZDNet Moderator | 06/07/09
I was thinking that $199  davebarnes | 06/05/09
they're re-selling the same OS  directory | 06/06/09
You really need to look a little closer  Ed BottZDNet Moderator | 06/06/09
Dude you have never used 7, have you?  shellcodes_coder | 06/06/09
Actually, you're wrong...  HypnoToad72 | 06/06/09
No, actually, you're wrong  rtk | 06/06/09
Couple of my ...  Dave32265 | 06/07/09
No doubt!  rtk | 06/08/09
My point is...  Dave32265 | 06/08/09
Agreed, regardless of OS or software vendor.  rtk | 06/08/09
Wrong  NStalnecker | 06/07/09
the win 7 installer says 512mb minimum (nt)  brokndodge@... | 06/07/09
nah  jeffk464 | 06/07/09
RE: Will the Windows 7 price be right?  jdbukis@... | 06/06/09
RE: Will the Windows 7 price be right?  shellcodes_coder | 06/06/09
So you want BitLocker?  Ed BottZDNet Moderator | 06/06/09
Yup  shellcodes_coder | 06/06/09
Win 7 bitlocker is good True Cript is as good or better  tech_walker | 06/06/09
nah it's not better  shellcodes_coder | 06/06/09
BitLocker uses TPM if it's available  TimothyMcGowan | 06/07/09
Home Edition with BitLocker  TimothyMcGowan | 06/06/09
Enterprises  Ed BottZDNet Moderator | 06/06/09
If these prices hold MS is going to gain market share  tech_walker | 06/06/09
They fleeced consumers with Vista.  HypnoToad72 | 06/06/09
You and Inaction Man  NStalnecker | 06/07/09
Nah, it's not that...  nizuse | 06/07/09
Then  NStalnecker | 06/07/09
Nah, I'll let guys like you iron out the bugs first  nizuse | 06/07/09
na  jeffk464 | 06/07/09
It is  NStalnecker | 06/08/09
There is nothing to invest in  NStalnecker | 06/08/09
After Expiration RC shuts down PC every 2hrs  bishopsumo | 06/24/09
I think they are spot on.  NStalnecker | 06/07/09
RE: Will the Windows 7 price be right?  htrudeau@... | 06/08/09
RE: Will the Windows 7 price be right?  wispeedy@... | 06/08/09
My plan  donniebnyc@... | 06/09/09
I think that is the point of the low prices  Worth2Cents | 06/09/09
Another leak memo says BestBuy will be the first to sell Win 7  Randalllind | 06/11/09
New Egg beat Best Buy to the punch  lcbrownz@... | 06/26/09
RE: Will the Windows 7 price be right?  Colin Patrick | 06/20/09
$ 0.00 is the right price  bishopsumo | 06/24/09
After Expiration RC shuts down PC every 2hrs  bishopsumo | 06/24/09
test  canyouhearmenow2 | 07/10/09
RE: Will the Windows 7 price be right?  apherrera | 10/20/09
Ha ha ha ha ha  Ed BottZDNet Moderator | 10/20/09

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