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Microsoft Says No Profit In Vista-XP Downgrades

CWmike writes "Microsoft has denied that it makes money when users 'downgrade' Windows Vista to XP, as a lawsuit filed last week alleges. The lawsuit, submitted last week, stems from the $59.25 fee that a California woman was charged in mid-2008 when she bought a Lenovo laptop and downgraded from Vista to XP. In fact, it's computer makers, not Microsoft per se, that charge users the additional fees for downgrading a new PC from Vista to XP at the factory. For example, Dell Inc. adds an extra $20 to the price to downgrade a PC. However, Microsoft may profit from the way it structures downgrade rights."

7 of 315 comments (clear)

  1. Re:Of course they are making money by jellomizer · · Score: 5, Informative

    Yes, but Windows use to be Microsoft Turkey that the Gravy just made better.
    Back in them olden days of the 1990's People wanted to get the latest and greatest versions of DOS/Windows. Now today people are not jumping threw hoops. I have been at Big companies who require Windows 2000 still.

    --
    If something is so important that you feel the need to post it on the internet... It probably isn't that important.
  2. So making a profit is illegal now? by Anonymous Coward · · Score: 5, Insightful

    Even if Microsoft was making money off a so-called downgrade, why is that grounds for a lawsuit? Are companies only allowed to profit from certain product lines now?

  3. Re:I'm Confused by leromarinvit · · Score: 5, Insightful

    something that to many people and organizations is still considered a valued piece of software.

    There's the problem. People consider XP more valuable than Vista and are willing to pay extra for it, so they charge extra.

    --
    Proud member of the Ferengi Socialist Party.
  4. Re:Of course they are making money by Bearhouse · · Score: 5, Insightful

    Not quite correct. FTA:"...when Dell was accused of gouging customers by charging $150 to downgrade a new computer to XP. Dell countered that although it did charge $20 to install XP on the machine, as well as to cover the cost of the additional media, the bulk -- $120 of the $150 -- was the price of upgrading the PC from the standard Home Premium to the more expensive Business edition.

    Microsoft does not offer downgrade rights with its Vista Home Premium, the most popular of Vista's editions."

    Your Dell config came with Vista Home Premium? Well, if you want XP you're SOL, that'll be $120 to 'upgrade' the Vista you want to 'downgrade'.

  5. Re:Of course they are making money by Taimat · · Score: 5, Informative

    Not 2 licenses... At my company, we build clones for our customer - with Vista, but we downgrade them all to XP. It's just 1 license. According to M$FT, They will not provide you with Media (you need your own XP media) or a license key (you reuse a key you have). When you go to activate, (if you didn't use a non-activation code) you have to explain to the rep that you are using your downgrade rights, and they will provide a new machine code for activation (not a new key). Vista Ultimate and Vista Business can be downgraded to XP in this manner.

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    The above comments are not guaranteed to make sense to anyone other than the author...
  6. They're making money on the marketing by Suzuran · · Score: 5, Interesting

    For every user that buys a Vista license and then downgrades, MS gets to claim that as a Vista sale. The higher sales numbers serve as marketing copy. It's artificially inflating their sales.

  7. Re:I'm Confused by vadim_t · · Score: 5, Insightful

    Then don't buy it, period.

    So as I said, I don't. XP is what I want, but I refuse to get it by getting Vista first. The only option I will go with is "XP, at a normal price"

    How is it illogical?
    It is not uncommon to find 'older' things to be more expensive than 'new' things for whatever reason. For example, original IBM Model M keyboards are quite pricey, even though they're *old*.

    That one is easy, there's demand, there's little supply, and you can't make an original Model M without restarting whatever factory made them, which may have already been demolished.

    Software is much different. Pressing an XP CD and pressing a Vista CD has the same cost, measured in cents. Preloading XP is unlikely to be more expensive than preloading Vista, especially since it's something that's been done for many years, and every manufacturer by now will have the process fully set up and debugged.

    By all logic, XP should be cheaper.

    The only reason it isn't is because Microsoft wants to sell people Vista, regardless of what they want. But that has nothing to do with the economics of CD pressing and distribution.

    Manufacturers are not allowing you to do anything; they make a product and offer it for sale, and it's your choice to buy it or not. If the product does not meet your needs, expectations, or ideology, you're free to buy a different product, not buy anything at all, or go build your own.

    That's how it used to work. Things aren't like this anymore.

    These days, the customers aren't independent anonymous people who show up at a shop and make an independent choice about which flavor of jam to buy. These days they go on forums, communicate and organize, and when they figure out that they can pressure a manufacturer to get what they want, they go and do that, because in large enough numbers it works.

    You seem to fail to realize that what you say enables this. I can say "I won't buy Vista, and won't buy XP at an extra price". For me individually this means that if MS doesn't offer the option I want, then yes, I go and use something else instead. But when it turns out that it's not just me, and there are millions of people who want the same, suddenly they become strong enough to force MS bend to their demand, because when there are that many people who want something, some of them turn out to be in control of important contracts, some willing enough to start a lawsuit, some to make their opinions widely heard, and so on. And collectively, all that, might well cost more than giving people what they want.

    Manufacturers are in business to make a profit, not to respond to every whiner's whim.

    Manufacturers are in the business to respond whims shared by millions of whining potential customers, because not doing that endangers their ability to make a profit.