Microsoft Plays Hardball With Windows 7 Versions

[Peaches]

Microsoft Plays Hardball With Windows 7 Versions

Posted by Dave Methvin, May 23, 2009 01:59 PM

"When Windows Vista proved too big to fit early netbooks, Microsoft resurrected XP at a lower price to satisfy that market. Microsoft would only sell XP to an OEM if the system was sufficiently underpowered that it couldn't run Vista. Microsoft has already said that all versions of the slimmer Windows 7 should run on netbooks, so what will happen with Windows 7?

Microsoft has been mum on details, but there have been some worrisome rumors that the company might come out with a "Windows 7 Starter for Small Notebook PC" and limit its use to netbooks. (Given that they did it with XP, it's not a stretch to think they'll try it with Windows 7.) Let's go back to the charges leveled against Microsoft by the Department of Justice in the 1990s. In that document, you'll see this claim:

66. Furthermore, Microsoft expends a significant portion of its monopoly power, which could otherwise be spent maximizing price, on imposing burdensome restrictions on its customers [OEMs] — and in inducing them to behave in ways — that augment and prolong that monopoly power.

One of the outcomes of Microsoft's consent decree was that OEM pricing was based on volume; OEMs that have the same sales volumes pay the same price. It was intended to prevent Microsoft from playing favorites -- rewarding or punishing OEMs for other related actions that pleased Microsoft. In this case, Microsoft would be pleased if competing operating systems didn't take over on netbooks. Before Microsoft brought back XP, Linux had a huge market share on netbooks. If Windows 7 is to maintain a hold on the netbook market, Microsoft has to offer OEMs a price that won't kill their budgets."

More details at IWeek - http://tinyurl.com/qubb4z