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Microsoft 'Vista Capable' Settlement Cost Could Be Over $8 Billion

bk- writes with news that documents from the "Vista Capable" class-action lawsuit against Microsoft indicate the software giant could be on the hook for as much as $8.52 billion in upgrade costs. "[University of Washington economist Keith] Leffler came up with his total upgrade costs by calculating how much it would cost to upgrade each of the 19.4 million PCs with 1 GB of memory and graphics cards or onboard chipsets able to run Aero, according to Keizer. Leffler put the maximum cost of upgrading the desktops at $155, while positing that the notebooks' integrated graphics would be more tricky to replace and would cost between $245 and $590 per unit. The total price tag for Microsoft would thus range from $3.92 billion to $8.52 billion and in some cases would include complete replacements of notebooks that could not be feasibly upgraded, Leffler testified. Microsoft in its response argued that giving litigants 'a free upgrade to Premium-ready PCs would provide a windfall to millions.'"

6 of 313 comments (clear)

  1. what would be the cost to refund by wjh31 · · Score: 5, Interesting

    what if they re-funded the cost of an OEM version of vista to everyone, and provided a free downgrade to XP, or up to 7, im sure that would cost less than $400 per PC, and seems an especially more practical alternative to upgrading the laptops.

    considering the value of a new laptop with 1GB ram and an aero-capable intel chipset these days, i wonder how many people would bother to get it changed once you factor in the hassle of sending off your laptop, waiting on the new one, setting it up, transfering the data etc...

    its reasonable to hold microsoft accountable for what is clearly misleading, but retailers/manufacturers are equally responsible for putting the sticker on if they knew their hardware couldnt run it acceptabley, even if MS said it would.

    1. Re:what would be the cost to refund by Meshach · · Score: 4, Interesting

      I have to agree with you that OEM vendors should bear a share of the responsibility.

      OEM do piles of testing and development to install their "tools" / malware onto the machines. They must have known that the OS was not capable.

      --
      "Maybe this world is another planet's hell"
      Aldous Huxley
    2. Re:what would be the cost to refund by Joce640k · · Score: 4, Interesting

      Nope. This lawsuit refers to machines which were sold with XP installed but with a sticker saying "Vista Capable" on them (and often a voucher for the Vista upgrade).

      Vista because it wasn't available at the time so they couldn't test machines with it.

      --
      No sig today...
  2. Re:why just Microsoft? by drinkypoo · · Score: 4, Interesting

    Hardware makers lobbied hard to get the sticker applied to hardware that couldn't support Aero & Microsoft caved.

    The Hardware makers should be at least as responsible, because they are the ones putting the stickers on the system.

    I dislike Microsoft as much as the next guy (well, most places) but fighting unfairness with unfairness is a little bitch move.

    Microsoft didn't put the stickers on the computers. Hold the integrators responsible. At least as responsible as Microsoft, maybe more.

    --
    "You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
  3. Re:why just Microsoft? by vux984 · · Score: 5, Interesting

    Sure hardware people asked for it. But it's the same as if your friend tells you that you should con people out of money. You choose to do it so it's your fault.

    I disagree with your analogy. To me its:

    My friends that want to con people out of money by selling them junk endorsed by a celebrity harware reviewer, (i.e. me). But I won't endorse their junk... so they piss and moan for a while, and I cave.

    They then stick my endorsement on their junk, and the customer gets ripped off by my friends.

    They then sue my ass for endorsing their junk, because I lied when I said it was good. Should I be on the hook? Yeah, I lied. But my friends are at the very least equal partners in this con; not only was it their idea, but they are the ones who actually sold the junk, and they did so deliberately and intentionally knowing it was junk.

  4. Re:Well. by jimicus · · Score: 4, Interesting

    They lied to shift hardware. To avoid pissing off Intel. They therefore need to give you WHAT YOU PAID FOR - you paid for a machine that was stated it could run Aero capably, so you should get that. No more No less.

    Here in the UK, that'd be the retailer's problem. After all, it was they who sold you the product (complete with Vista capable sticker), it's their problem if it later transpires it isn't Vista capable. (In the real world, you'd almost certainly have no end of trouble getting a refund or a free upgrade in a case like this, but that's not really the point)

    I'm surprised that this isn't the case in the US, frankly. What's the point in retailers if they're not responsible for the products they retail?