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Vista Sales Expectations Too High, Office Doing Well

PetManimal writes "A comparison of first-week retail sales of Vista compared to first-week sales of XP back in 2001 found that Vista sales were 60% lower. Steve Ballmer has admitted that earlier sales forecasts were 'overly aggressive,' but at least there is some good news for Microsoft: early Office 2007 sales were very strong compared to the early sales of Office 2003, despite almost no advertising or marketing until the retail launch at the end of January."

31 of 320 comments (clear)

  1. Thing is... by gcnaddict · · Score: 5, Insightful

    Vista received a huge marketing campaign, but most people who kept track of what Microsoft was doing for the past 5 years know that Vista could've been much better than what it turned out to be due to the development crash in August 2004.

    Office, on the other hand, was praised as something which would make life much easier for people because of the new ribbon. There's even a home and student version for people who can't afford paying for standard edition.

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    1. Re:Thing is... by MightyYar · · Score: 5, Insightful

      Replace "most people" with "most people on Slashdot"... Most people have no idea what MS has done in the past 5 years, nor do they care. The NASCAR scandal is all they can handle right now.

      --
      W..w..W - Willy Waterloo washes Warren Wiggins who is washing Waldo Woo.
    2. Re:Thing is... by eln · · Score: 5, Insightful

      Vista had a lot of marketing among the technology industry, but it also had a ton of bad press from beta testers reviewing it (You are posting a comment critical to Windows Vista, confirm or deny?). The mass media marketing did not really get into gear until fairly recently, and by that time anyone who was familiar with technology was already spreading the news that Vista was not very much different than XP except that it broke a lot of things that work under XP without providing a well-known mechanism for backward compatibility (even XP's broken Win95 emulation mode was better than nothing).

      When faced with a new product that works almost the same as the old product except that existing software doesn't work very well on it, I don't see why it's such a shock that uptake has been so slow.

    3. Re:Thing is... by spellraiser · · Score: 3, Insightful

      I'm not surprised at all either. Vista offers nothing substantially new that justifies the price of an upgrade. Sure, it has a fancy new interface and supposedly better security, but at the end of the day it's just a little bit of more of the same. There's only so much you can squeeze out of a desktop system - after all, it's only the bones of the system. The meat is in the applications. If your OS is already quite good enough and does everything you need it to do, why shell out for an upgrade?

      However, Office 2007 at least supposedly offers a revolutionary new way to use the application. It seems that this promise has enormous appeal for people. For instance, I'm having a harder time than ever debating the merits of OpenOffice. It seems Microsoft could have a winner there, loath as I am to admit it. Doesn't change the fact that I'm sticking with OO and Linux, but still ...

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    4. Re:Thing is... by coastin · · Score: 2, Insightful

      I thought the campaign was starting to slow down a bit. weak sales would explain that. With 5 years to forget why someone should rush out and buy the next OS, MS has re-trained many of their user base not to need the newest thing. It will take some time for them to re-train the user base to want the newest thing again.

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    5. Re:Thing is... by Clazzy · · Score: 4, Insightful

      But the people on Slashdot are the people who buy the operating systems. The average person would never go out to the shops and buy Vista, they'd buy a computer with it preinstalled.

      --
      If we can hit that bull's-eye, the rest of the dominoes will fall like a house of cards... Checkmate.
    6. Re:Thing is... by the_macman · · Score: 5, Insightful

      Replace "most people" with "most people on Slashdot"... Most people have no idea what MS has done in the past 5 years, nor do they care. The NASCAR scandal is all they can handle right now.
      Actually...you're dead wrong. You are correct most people don't pay attention to MS, but people aren't gonna go out and pay $250 (or however much it costs) for something they don't know about.

      I know for a FACT that people who are clueless about computers already have the idea Vista sucks and do not want to buy it.

      You know why? They ask US for advice and we tell them it sucks. I can personally think of 5+ accounts of average users asking about upgrading to Vista and a horde of geeks respond with a resounding NO! These are some of the things I've heard average users say about Vista...

      1. "It's riddled with anti-piracy locks, why get Vista when my pirated copy of XP works fine"
      2. "XP works great, why should I get Vista?"
      3. "I heard it won't run on my computer"
      4. "Unless your computer is brand new it will run like crap"
      5. "It sucks for games. If you want to game man, stick with XP"

      So don't say people have no idea about Vista, that is simply untrue.
    7. Re:Thing is... by p0tat03 · · Score: 2, Insightful

      Because people still uise 2000. I still use 98. It is when you are willing to spend hundreds of dollars to run new operating systems in order to run _A_PROGRAM_ that the world has turned upside down. In real life, you produce a product that fits into the way people are doing things.

      I work for a software developer that does both Mac and PC software. Our next release cuts off Panther support, and I don't think we've supported Win2K since the last version. Our installer does check for it, and will deny install if your OS doesn't meet your specs.

      Why? Because there is a cost related to proper quality assurance on any platform. We cannot in good conscience release software that has not been fully and thoroughly tested, and to be honest, we'd rather not have the support calls when users run into these inevitable bugs. In a perfect world if you follow the API docs everything will be hunky dory, reality is much less ideal. Testing on more platforms means more machines and more QA testers, the latter of which cost a LOT of money.

      This is not to mention the fact that as we develop and add features in subsequent releases, we start utilizing API calls and OS features that only certain versions support. I myself was just implementing something with Carbon API calls in OSX that are only available in OS 10.3 and later. Can we hack a way around it? Sure, but it'll be messy, and it'll break interoperability with other parts of the OS.

      So the sad reality is, OS support does need to be cut off at a certain point, both because we start using features that aren't available in older OSes, and because the cost of support and QA becomes unfeasible. Note that as a software company we are not suicidal - we don't lock you into XP or OSX Tiger because we feel like it or because some vendor paid us off. We only lock you in after we are convinced that the *vast* majority (and we're talking VAST) are running on that platform. We are not stupid, we're not going to cut off support for an OS if a significant number of people are still using it. Honestly, I find your claims of developer kickbacks to be ludicrous, laughable, and at least a little insulting. Take off your tinfoil hat, there's no big conspiracy between MS and your common app developers (and our app is VERY large in the industry) to make you upgrade!

      As for the installer issue. Here's the deal. It costs us time and money when a user calls our support line. Believe it or not, if you present the "Warning: There is no support if you proceed!" dialog box, people will still call, and they will still demand support. When they do not get it they will get their panties in a bunch and tell all their friends about your horrible customer service (said friends are also likely to believe them). Hell, if someone calls up the support line and says "when I open window X and then window Y, the program crashes!", we immediately assume the user has discovered a bug, it may in fact never come out during the support call that the user is running Win98. This wastes our time and money.

      In other words, we cannot trust the user to totally grok what it means to not be supported.

    8. Re:Thing is... by Anonymous Coward · · Score: 2, Insightful

      Depends on how you define "support." If by support you mean security patches only, then yes. If OTOH you mean patches that keep the computer at a consistent level of usability, ie. a patch to address the change in daylight savings, or any of the other fixes that are deemed requisite enough to add to XP, then no, they've ended support.

      Personally, I run 100% Linux. (ok, IsiloX in Wine) Win2k was the best OS MS ever produced, and the last MS OS I'll ever install.

  2. Is anyone surprised? by InsaneProcessor · · Score: 2, Insightful

    confirm response, accept or deny?

    Vista bugs me too much. I killed it.

    --

    Athiesm is a religion like not collecting stamps is a hobby.
    1. Re:Is anyone surprised? by SirMeliot · · Score: 5, Insightful

      I'm not remotely surprised. XP was a huge upgrade from Win 98. In comparison Vista's more like Win Me

    2. Re:Is anyone surprised? by Rycross · · Score: 1, Insightful

      I actually upgraded from 2k to WinXP for $5 (through my University). I'm not sure if it was worth the $5. I basically got a version of Windows that could apply anti-aliasing to my desktop background.

      That being said, Vista is a larger upgrade than Win98->WinME or Win2k->WinXP. But not nearly large enough to justify the price. Businesses don't seem too enthusiastic to switch over either. I imagine Vista will gain market penetration through Dell and its ilk rather than people going out and buying licenses.

    3. Re:Is anyone surprised? by ThePlague · · Score: 1, Insightful

      I'm still using 2k on most of my work/home computers. I've run into only one or two things that don't work under 2k that do work under xp, but those are simply the "purposefully broken" stuff, like the latest MS messenger and some lame ass d/l management utility "needed" for a game expansion pack. BF2 Special Forces, if I recall correctly. I didn't get it, though there was a workaround for it.

    4. Re:Is anyone surprised? by Dachannien · · Score: 2, Insightful

      confirm response, accept or deny?

      We've come a long way since "Abort, Retry, Fail?", haven't we.

    5. Re:Is anyone surprised? by SEMW · · Score: 3, Insightful

      Vista, however, is so rushed and incomplete that SP1 is actually coming later this year. 5 years in development, and over one and a half years in Beta (that's three seperate complete releases of Ubuntu in the time Vista's been in beta), and you're calling it rushed? You can accuse Vista of being many things, not all particularly complimentary, but I don't think rushed is one of them.

      Re the SP1 thing, IIRC from what I've read that's a combination of bringing Vista up to date with the by-then-released Longhorn Server and pacifying the "Don't upgrade till SP1!" crowd; but I could be wrong.
      --
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  3. Not Surprising by Rycross · · Score: 4, Insightful

    Having had access to the Vista RTM for several months through my MSDN subscription, Ive had a decent amount of friends and family asking me if they should upgrade. I always tell them thats its a fairly nice OS but its not worth the money. Take it if its free, but otherwise stick with what you have. There aren't enough feature updates to justify spending $100+.

    1. Re:Not Surprising by fermion · · Score: 3, Insightful
      The price is the key issue. The cheap versions are of confusing fuctionality, and the cost of the full version, often bought by people who don't need it, but hate to buy limited versions, are astronomical. The cost of the OS is now more than the computer it runs on(And don't say that good PCs are $1000, because that is the cost of Apple, and we all know that Apples are at least twice the price of the PC).

      OTOH, cost may only be half the issue. When XP came out, MS did not have a mature mainstream OS. Many were able to NT, but many other were still on 98, or, even worse, ME. Only a limited number of people were on 2000. When XP was released, the market was desperate for an OS that just worked, and, after a couple years, XP did mostly just work. Only the die hards stay with 2000.

      If we go even deeper, we know that Vista should be an inferior product, if not a total failure. MS does come out with consecutive reliable OS. Perhaps Vista 3.11 will meet expectations, but not Vista 1.00.

      --
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    2. Re:Not surprising by mingot · · Score: 3, Insightful

      Yeah, when you have hundreds or thousands of documents.

      The poster I replied to mentioned he had to install office to "send some documents". I'm pretty sure that "send some documents" does not mean that he wants to convert and send "hundreds of thousands" of documents. For this user I am quite sure that the "save as" function would have worked quite well, and he admits as much in a followup message.

      Compatibility pack?! You're killing me. You have to install an extra in order to make MS Office compatible with MS Office?

      Is it that unreasonable to have to update older versions of a product to consume newer versions of file formats? I mean if I grabbed a copy of mosaic from 1990 I don't think it would do a very good job of displaying PNG files, would it? Or CSS. Or modern HTML. (much like the IE of today, HAHA). It would require a *gasp* update.

  4. Not surprising by $RANDOMLUSER · · Score: 4, Insightful

    People rarely talk about just how viral Office updates are. You save a doc in 2000 format, and suddenly 97 can no longer open it. Save it in 2003 and 2000 can't open it. And so on. A customer/vendor/friend sends you a doc file, and you can't open it. Time to upgrade!

    --
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  5. Imagine if people actually had a choice! by pla · · Score: 5, Insightful

    A comparison of first-week retail sales of Vista compared to first-week sales of XP back in 2001 found that Vista sales were 60% lower.

    And of those who did buy Vista, most didn't even want it!

    I've helped four friends/family/FOAFs out so far who just bought a new PC and wanted to know how to get rid of Vista (the major OEMs no longer even give you a choice of XP).

    They all, without exception, had the same set of complaints... They didn't know where to get at all the normal Windows tools, and despite having "upgraded" for a faster computer, their new machines, it felt significantly less responsive (I've translated a bit, and removed the streams of obscenities).

    Short of piracy (or actually buying XP), I explained to them how to make Vista as XP-like as possible. Still not perfect, still a CPU and memory hog, still moved quite a bit around from the XP layout, but at least they could then use it.



    Pathetic. If Microsoft wants to offer a new OS, fine. But they've gone out of their way to make it almost impossible to get a new, legal copy of XP, just so they can boost Vista's market penetration.
    what OS they want?

    1. Re:Imagine if people actually had a choice! by compupc1 · · Score: 2, Insightful

      First, it sounds more like most of their complaints are not with Vista itself, but that Vista is different from XP. I guess I don't understand this. The point of an OS upgrade is that things change, hopefully for the better. And people here complain that not enough changed to justify an upgrade. Well it doesn't work both ways. Changes (in anything in life) do incur a learning curve, but the idea is that once you get used to the change, you're better off.

      Secondly, you claim that Vista is a memory hog. Do you know why it's a "memory hog", as you put it? Because it pre-loads data you might need, based on historical usage patterns. Any good OS *should* be using as much RAM as possible. That way, it doesn't have to be loaded from disk upon request. If an app requests RAM, I guarantee Vista will flush out part of it's pre-cached data. So in other words, the RAM is still available to applications upon request. Point being, the high RAM usage is a good thing.

      As far as being a CPU hog, I generally do agree with this one. I've noticed my CPU usage is generally higher than it was with XP. I think this is largely due to things like background file indexing, DreamScene, Aero, etc. But for all of these things, I've noticed that Vista is usually good about stopping those "nice but not necessary" background processes when other applications need the CPU time, when you go on batteries, etc. So it hasn't really been anything more than an annoyance for me, and the benefits I reap from things like lightning-fast search, in my mind outweigh the generally high CPU usage.

      As far as the responsiveness, I guess I've been running it for a month or so now and I haven't had any problems. Initially it was a bit slower, but as time goes on I've noticed an improvement in response time. I'm guessing this is likely due to the adaptive/learning "Superfetch" memory manager (see above paragraph). In fact, I would even go as far as claiming that as of now, Vista is slightly more responsive than XP was, on this 1.5-year old laptop. For instance, even when I have a lot of stuff running in the background, Word takes all of 0.25 seconds to load from scratch. That never happened with XP.

      As far as XP availability, I'm guessing that's more a function of companies like Dell or HP not wanting to sell XP. While Microsoft may have certain incentives for doing this, there are also real benefits to moving people to a new OS. The sooner XP is no longer sold, the sooner companies won't have to offer support for multiple OS versions. That sort of multi-OS support has a real cost associated with it, I wouldn't blame companies for trying to minimize it.

      But even beyond that, why wouldn't Microsoft want to promote their new OS? Although I probably would not justify people paying for an upgrade (I got mine from MSDNAA), there's really no good reason not to get it on a new PC. At the user level, there aren't huge changes beyond maybe Aero. But under the hood there's quite a few things that are drastically improved (IPv6/whole new network stack, built in anti-spyware, UAC, a *far* cleaner user interface API, DirectX 10's hardware standardization, etc.) I look at Vista as a whole TON of minor, incremental updates that together make for a decent upgrade.

      --
      -James
  6. The reasons are obvious by erroneus · · Score: 2, Insightful

    People upgrade to keep current and compatible. I find little to no software that doesn't run on Windows 2000, forget about XP and Vista. They have XP because all the computers they bought came with it. Little incentive really came into play to upgrade to XP just as little incentive exists for upgrading to Vista.

    People upgrade MS Office to ensure that when they are doing business with people, they will be able to open up the documents sent to them. MS Office is probably the ultimate achievement when it comes to viral marketing. (Or maybe I'm not using the term correctly?) But what I'm trying to say is that it has nothing to do with new features or new UIs and everything to do with supporting new file formats. And while end-users don't understand that it's a practice that is abusive to consumers and the marketplace in general, they understand that if they don't upgrade, they will run into problems such as not being able to open documents critical to their business activities.

  7. Re:I think you're being a bit unfair..... by DrDitto · · Score: 4, Insightful

    Yesterday I sat in a coffee shop for 3 hours. I heard two groups of people discuss who they thought was the father of Anna Nicole Smith's baby.

  8. This is not a foot race by Bullfish · · Score: 3, Insightful

    Thing is, MS has the legs in terms of cash to wait for Vista to mature into a market force, even if all of us wait for Vista to mature into a better OS. People howled when XP came out, and now people don't want to give it up. When Win95 came out, it sold very well despite all the Win95 = Mac 88 jokes. Within three years expect Vista to the dominating operating system. Today's expensive hardware required to run the fancier parts of Vista will be next year's cheap hardware. The drivers to run everything will come and DX10 games will eventually show.

    I will wait until I need to/want to upgrade, but I expect Vista will grow in usage even if I never adopt it. Whatever adoption rate regarding Vista is happening today, don't expect it to stay that way. Also don't expect MS to be crying that everyone isn't picking up a copy today.

  9. Re:The reasons are NOT obvious by erroneus · · Score: 2, Insightful

    The argument is that there *was* little incentive to go from 2000 to XP right away. Through time, it happened anyway but mostly because 2000 was less available or at least less visible. Now here we are with Vista and the same thing is happening.

    In short, I'm arguing that history already shows us what to expect. There are no apps that induce upgrading to Vista and Vista itself is not motivation enough.

  10. Re:Can't find XP on the low end anymore by Rycross · · Score: 2, Insightful

    I'm guessing the high end would more for gaming, which apparently has issues under Vista at the moment. Also, could be that they sell more high end stuff to businesses, who usually aren't eager to adopt a "new" technology like Vista.

  11. Needs network effect from preloads by Sloppy · · Score: 2, Insightful

    Microsoft would be nothing without the preloads. But they have the preloads. Anyone who thinks Vista sales won't take off, must have forgotten this.

    Just be patient. As brand new machines are sold with Vista on them, the number of Vista users will grow. Then people can start running apps that only work with Vista. Then those people will want to exchange information with people who aren't running Vista yet. And then people will start to "upgrade," even if they're not buying a new machine.

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  12. Re:Queue up the chair jokes! by ozbird · · Score: 3, Insightful

    ...and office 2007 sucks because it's not more of the same.

    It's also more of the same, but people haven't noticed yet because of the distraction of the Ribbon.
    ("Look over there - a shiny thing!" <runs away>)

  13. Re:Things have to *work* first.... by Anonymous Coward · · Score: 1, Insightful

    you /. people really trip me out. All that software doesn't run correctly because it wasn't written correctly. How do you want it?

    Do you want a pourus operating system that does everything as administrator by default, running apps that are designed to run as administrator by default.

    OR

    Do you want a secure operating system that does everything with a privledged account, running apps that are designed to run on a privledged account.

    OR

    Do you just want to bitch about Microsoft and pat each other with your whitty jokes and sarcastic responses with no consideration for reality.

    Those bits have compatibility problems because they are designed to run as admin. Not because Microsoft broke Windows.

  14. Re:Things have to *work* first.... by Anonymous Coward · · Score: 2, Insightful

    The problem is that Microsoft is trying to tighten security and programs which do not follow the Windows Logo requirements, specifications Microsoft has made available for 15 years, will break. Microsoft will never, ever be able to get away from Administrator-By-Default unless they carry this out and force ISVs to comply. The problems with deploying Vista are nearly identical to the problems with deploying Windows NT, Windows 2000 and Windows XP in a workplace using default Domain security settings.

    QuickBooks is a perfectly example. It does not follow proper security and assumes that the user can write to any location of the file system or the registry on the workstation. Intuit's support even states that you must be at least a Power User to run this application. I am not at all surprised that this program does not work in Vista.

    MS has usually bent themselves over backwards to attempt to ensure that all legacy applications work. There are actually shims built into the OS that permit stupid crap to happen without fail for specific applications. For example, there was a known bug in Sim City where it would attempt to reference a memory address shortly after the process released that block of memory. In Windows 9x, which did not enforce process memory spaces, this did not cause a problem. Under Windows NT/2000 it would cause a GPF (synonymous with a SEGFAULT), but the Windows team specifically built in a shim that if the binary is Sim City that it would permit the program to rereference a recently deallocated block of memory, just to keep the application working. There are thousands of such shims, and if they were willing to do this for a game imagine what they did for business applications.

    Truth is that Microsoft cannot fix the OS without breaking applications. For a very long time they fought this but realized that they can't.

    Yes it sucks, but if the eventual goal is a stable and secure system, I don't care how many crappy programs they break.

  15. Re:Queue up the chair jokes! by smaddox · · Score: 5, Insightful

    I personally think the reason sales are low is because not as many people are buying new computers, as they did during the 98-XP switch. The majority of Vista sales is going to be through new computer sales.

    Since XP actually does a decent job of retaining speed (a reformat still does wonders), no one needs to buy a new computer. If all they use it for is web browsing and e-mail, why do they need a new computer/OS that does neither any better than XP (unless you count more flashy as better)?