March 11th, 2009
Microsoft gambles that "Starter" edition dissatisfaction will boost revenues
The sudden popularity of netbooks caught Microsoft off-guard. Vista’s bloated system requirements forced the company to dust off Windows XP and offer that older, cheaper OS to OEMs looking to a Windows-based netbook solution. Microsoft is now gambling that making a cut-down, crippled ”Starter” edition Windows 7 for low-cost systems, combined with an easy (but paid for) “Anytime Upgrade” will help boost flagging revenues. Personally, I think that it’s a gamble - a dangerous gamble.
Bloomberg has some background:
“The challenge for us clearly is to get the average selling price up,” Microsoft Chief Financial Officer Chris Liddell said last week. “We see Windows 7 at as an opportunity. We’ll have the ability for people to trade up, which would give us a price more similar to what we would normally get for a consumer.”
To push customers to pricier versions of Windows 7, Microsoft is limiting the features of the cheaper edition. The most basic, called Starter Edition, can only run three programs at a time.
Microsoft will make it easy for consumers to quickly upgrade to more advanced versions, as all the required software will already be installed on the machine and it just takes a few minutes to switch from one version to the next, said Parri Munsell, a director at Microsoft’s Windows business.
Come the release of Windows 7 OEMs will be able to offer their customers the OS in four flavors - Starter, Home Premium, Professional (equivalent to Vista’s Business edition) and Ultimate. The cheapest of these flavors will be Starter and this is being touted by Microsoft as the best OS for low-cost systems. Problem with Starter is that is has one serious limitation - you can only run a maximum of three applications at any one time.
Continued –>
Adrian is a technology journalist and author who has devoted over a decade to helping users get the most from technology. He also runs a popular blog called The PC Doctor. See his full profile and disclosure of his industry affiliations
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| 03/12/09
