Microsoft to cut manufacturer price for Win

[questionmark]

(Reuters) - Microsoft Corp is reducing the price of Windows 8.1 for manufacturers of low-cost computers and tablets by 70 percent to compete with cheaper products like Google Inc's Chromebooks, Bloomberg News reported on Saturday, citing sources familiar with the program.

Computer makers will be charged $15 to license Windows 8.1 and pre-install it on devices retailing for under $250, compared with the standard fee of $50, Bloomberg reported. Any product that meets the price limit will be eligible for the discount, with no restrictions on the type or size of the device.

Sales of Microsoft's Windows 8 system, including its latest Windows 8.1 version, have been relatively slow since its launch 15 months ago. More than 200 million Window 8 licenses were sold, lagging Windows 7, which sold 240 million within its first year, according to Tami Reller, head of marketing for Microsoft.

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70%?

That tells me one of two things:

Microsoft is short on cash and this is a desperate attempt to generate some

or

Microsoft has been overcharging on Windows exploiting their quasi-monopoly

or

both.

[A rather obscure Bassoon]

70%?

That tells me one of two things:

Microsoft is short on cash and this is a desperate attempt to generate some

or

Microsoft has been overcharging on Windows exploiting their quasi-monopoly

or

both.

That's just plain Cynical,I'm sure Microsoft have the best interests of the Consumer at heart.

[Orcseeker]

I wonder if the OEMs will change their price of prebuilt pcs, laptops or tablets in response to this.

[Occult1]

I think this move serves two purpose:

1. A last desperate attempt to sell Windows 8(.1) before Windows 9 is released (in 2014 or 15, it is not confirmed yet.) Microsoft acknowledged that Windows 8 was a mistake and claimed it will fixed it in the next Windows. (http://digitaljourna.../article/349763)

2. To counter-attack the slow but steady rise of the chromebooks. http://www.dailytech...rticle33985.htm We know that Microsoft has been especially aggressive against Google, releasing adds that dismissed their product.

Paying less can't a bad thing for the customer anyway.

Edited February 23, 2014 by sam_comm