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Microsoft Said To Cut Windows Price 70% For Low Cost Devices

kc123 writes with this except from Bloomberg News: "Microsoft is cutting the price of Windows 8.1 by 70 percent for makers of low-cost computers and tablets as they try to fend off cheaper rivals like Google's Chromebooks, people familiar with the program said. Manufacturers will be charged $15 to license Windows 8.1 and preinstall it on devices that retail for less than $250, instead of the usual fee of $50. The discount will apply to any products that meet the price limit, with no restrictions on the size or type of device."

35 of 178 comments (clear)

  1. At last by MCROnline · · Score: 5, Insightful

    Now all we need is Windows retail to be a more realistic price too.

    1. Re:At last by binarylarry · · Score: 5, Funny

      If someone from Microsoft is reading this, I personally don't think I pay enough.

      I think the basic ad supported version of Windows 8 should start at $999 at least and go up from there for the more powerful versions.

      I always feel guilt buying copies of Windows because I know how much I'm ripping Microsoft off.

      --
      Mod me down, my New Earth Global Warmingist friends!
    2. Re:At last by Luckyo · · Score: 2

      It's good that piratebay offers a very good absolution from these feelings of guilt.

    3. Re:At last by ColdWetDog · · Score: 3, Insightful

      It's like telling poor people they should stop stealing and just lie down and starve. Sure in an ideal world that's what they would do.

      The scary thing is that there really are people who believe that poor people should just lie down and starve, as if respecting property rights is more important than staying alive.

      The really scary thing is people like you who think that TV shows and commercial software are needed to survive. The rest of the planet and the rest of history would like a word with you.

      --
      Faster! Faster! Faster would be better!
    4. Re:At last by Bing+Tsher+E · · Score: 2

      I'd think so too, if I were pirating it from an unknown source. But sites like The Pirate Bay have comment threads attached to their linked warez, and people do chime in when they find unexpected malware. So you only download well-seeded isos that have lengthy comment threads praising them. Downloading software from a robust and well populated community of peers is fairly safe. Given that malware makes it into commercial distributions often enough, it's probably as good a place to download an OS as any other.

    5. Re:At last by marcosdumay · · Score: 2

      "It'll fail" is the usual prognostic when a company starts a price race with their competitors... But in this case, the competitors are already giving their product away for free. This is much worse than a usual race to the bottom.

    6. Re: At last by K.+S.+Kyosuke · · Score: 3, Interesting

      I once tried something that looked interesting - there were two torrents apparently for the same program - virtually identical up to the name of the large single-file .exe installer - but one of them was like 50 kB larger or so. I didn't need the program but I got extremely curious as to what was the extra value. So I downloaded it and ran it in a nice safe sandbox. Well, would you guess? There was a nice trojan in it for free. Apparently, that was the only difference. So I commented on it, attaching the hashes of the offensive file to warn everyone. As I reloaded the page two minutes later or so, the whole torrent (the TPB entry, that is) was gone! I have no idea if the uploader did that, or if someone watches this, but it was *suspiciously* fast. Strange event, that one.

      --
      Ezekiel 23:20
  2. Whoop-de-do! by hughbar · · Score: 4, Funny

    If they pay me $15, I'll take a copy. Don't want it on any device I own or use though...

    --
    On y va, qui mal y pense!
    1. Re:Whoop-de-do! by the_humeister · · Score: 2, Interesting

      I bought two copies for $15 each back when it first came out (promotion lasted for 6 months, was considering buying more just in case). Went from Windows 7 Home permium to Windows 8 Pro. Wasn't too bad of a purchase: 1) it's faster in games, 2) it comes with Hyper-V, 3) non-English language support (especially Chinese and Japanese) is much better than Windows 7. So what about Metro? What Metro? I have Classic Shell installed so I never see it.

    2. Re:Whoop-de-do! by fuzzyfuzzyfungus · · Score: 2

      3) non-English language support (especially Chinese and Japanese) is much better than Windows 7.

      Are you a walking ad? You're concerned about support for English, Chinese, Japanese, and another language too?

      Many people have no use for that particular feature; but (if you are one of the unlucky souls consigned to a need to know about the arcana of Windows licensing) it's actually somewhat notable: Language support has traditionally served as a market segmentation mechanism: can't have filthy non-corporations engaging in international arbitrage trading, now can we? So companies (including MS with earlier versions of Windows under many of their assorted licensing schemes) have tended to gimp multi-language support to greater or lesser degrees in order to keep people from being able to trade copies purchased in different areas with people in other language areas (aside from expats, and copies with the necessary language files cracked in). Localization isn't free, so there is an argument to be made that Joe User, EN-US, is buying less software than Joe Cosmopolitan Translator of the 19 Tongues, and should pay less; but my memory is that, historically, getting additional language support in Windows has been a bit painful. It didn't come by default in the most common versions, you couldn't purchase it from them one language at a time; and you sometimes could only get what you needed by buying the 'we just threw in absolutely everything' edition, or some sort of enterprise-support-contract edition.

    3. Re: Whoop-de-do! by antifoidulus · · Score: 2

      Yet another reason not to use windows. The other commercial OS has supported multiple languages for free for over a decade.... Windows UTF-8 support is a joke and it causes me a lot of grief. I really wish my company would go all Google and ban windows but alas they have not. Using windows really is like jumping in a time machine, you can see what computing was like 15 years ago.

    4. Re:Whoop-de-do! by geekster99 · · Score: 4, Insightful

      No it's not the only difference. How about:

      1) You can't add an administrative user without using the metro user app to create the user and follow up by switching to the desktop app to promote the user to administrator. How stupid is that?

      2) No more safe mode with F8. What happens when Microsoft Windows update installs a fscked up video driver (like it did to one of the machines I worked on) and it no longer boots with video? 8.x has to boot to working WINDOWS to force a reboot into safe mode. How stupid is that? I guess we'll never need to go to safe mode unless Windows is working properly. Sheesh

      3) That God awful abortion of "fast shutdown and startup." Good luck getting rid of root kits and virii if you don't know the tricks to get Windows to actually reboot the system.

      4) Windows 8.x shills and apologists always point out that installing "classic shell" or "start8" makes it usable. Why in God's name should an end user be forced to install third party software to repair the functionality intentionally gutted by Microsoft? The last Lenovo I worked on came with a replacement start menu app preinstalled. Of course, the Windows 8.1 update removed it. Which is 8.x? A half-ass desktop OS or a half-ass tablet OS?

      I could go on, but you get the picture. Windows 8.x's user interface and user experience are a piece of shit. I don't care if it plays games or copies files faster. I wouldn't pay for it if it was $15. I wouldn't use it if it was free. Every time I am handed a 8.x machine, I think there is no way it could suck more than I have already seen. Every single time, it proves me wrong.

    5. Re:Whoop-de-do! by Bill,+Shooter+of+Bul · · Score: 2

      If every user of stock windows 8 does not notice Metro... They need to seek medical attention immediately.

      I think you meant something along the lines of "Not everyone hates Metro". But to be clear and fair, its the first thing any one with eyes will notice, and as such it deserves all the criticism it gets.

      Yeah, there are some great things about windows 8 that does get lost by most users due to the Fkup that is metro. But this is how it is with Microsoft, great improvements behind the scenes get overlooked because they did something else even stupider and more noticeable. Such is their gift to the software world.

      Compare/contrast with OSX early in its life. Early times, it was all about the back end, which pissed off OS 9 users as the UI had regressed significantly, even though it was much more stable and better performing. Eventually with the backend good enough they switched attention to the UI and fixed a bunch of regressions. Most of the complaints went away. Microsoft changed the UI for the worse for most of its users. Now its slowly fixing it, I think. Or making it much worse, its tough to tell sometimes with them. It really seems like they don't have a masterplan for the desktop/metro interfaces and are just floating in the proverbial wind. That kind of shit should have been done before any of the code was written.

      --
      Well.. maybe. Or Maybe not. But Definitely not sort of.
  3. Good-bye middle tier by SuperKendall · · Score: 4, Insightful

    One unwanted side effect I can see coming from this, is that most Windows devices will become either very cheap (to meet the price guideline) or very expensive. If you build a device costing $500, the cheaper devices are not going to be that much lower in spec than you because they didn't have to eat a more expensive Windows license.

    When I read this story, I was excited because I thought it meant cheaper Windows for home users. I wouldn't mind running Windows 8 in Parallels on my mac, or even dual boot to it to play games. But the price for consumers is just too high for me to do that. They could get a lot of casual Windows sales and remain relevant but for some reason, they just don't seem interested in doing so.

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:Good-bye middle tier by Luckyo · · Score: 2

      I don't think you need to worry. Windows 7, which is routinely sold with everything but cheapest stuff is not on the fire sale.

      This actually looks more like a desperate attempt to peddle win 8 under a different guise. Most of the mid range and higher ads that I see nowadays show win 7.

    2. Re:Good-bye middle tier by 140Mandak262Jamuna · · Score: 3, Interesting
      The difference is just 35$. That is going to kill the middle tier devices? Being a windows box is going to be a bigger disadvantage than 35$ for that 500$ device. Basic problem is there is no killer must have app for that mythical 500$ device. Penny pinchers want a simple sub 200$ machine. Bells and whistles fanboi\s don't care that much about the price.

      The problem for Microsoft is that it sells only to corporations and gamers. Both are not as price conscious as home users. But it has to fight a rear guard action to keep the home user in the fold. Otherwise they taste competing OS and see how others do it and demand Microsoft's feet to fire. They demand interoperability. There are people who have more powerful computing platforms in their pockets iPhones/androids/tablets than the corporation provided desktop they work on. The company workstation PC is hampered by layers and layers of IT clunkiness loaded on top of Microsoft cluelessness. I think this 15$ is just a PR stunt to fool the stock analysts, in reality Microsoft would be giving OS away for free without telling analysts.

      --
      sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    3. Re:Good-bye middle tier by Penguinisto · · Score: 2

      The difference is just 35$. That is going to kill the middle tier devices? Being a windows box is going to be a bigger disadvantage than 35$ for that 500$ device.

      Most hardware OEMs have margins thin enough that 7% ($35) will easily make a difference between a profitable device and a money-loser on a $500 product.
      A sub-$300 device is even worse, with that $35 making up at least 11.5% of the total at $300, and growing as the overall price goes down.

      Seriously - the only lap/desktop/tablet OEM that has decent margins is Apple, and they obviously don't ship Windows with their products.

      --
      Quo usque tandem abutere, Nimbus, patientia nostra?
    4. Re:Good-bye middle tier by fuzzyfuzzyfungus · · Score: 3, Interesting

      At retail, $35 can get you 2GB of RAM from somebody you might actually respect, 4 from somebody who probably doesn't just sneak into competitors' factories at night to steal the stuff that failed QC...

      $35 is also, depending on the phase of the moon and where you fall in AMD and Nvidia's release cycles, enough to get you bumped a tier or two in GPU capability. HDDs are a similar story, you aren't going to do anything radical for $35 bucks(say a switch form cheap 'n capacious HDD to screaming-fast SSD); but you can probably squeeze 1 'unit' of additional capacity, exactly how many gigs that is depending on the conditions of the day and whether you are buying HDD or SSD, out of your vendor for $35.

      The less-visible-at retail stuff like fit-and-finish, case materials, what gets to be metal and what gets to be plastic, are harder for me to comment on; but 'just $35' can likely buy you 1 'bump' in any of the major spec areas, or some additional classiness in build quality. Especially if your ass is being kicked on industrial design grounds, or user dissatisfaction with your failure prone PSUs, that's not something to dismiss lightly...

  4. Microsoft, the former leader by surfdaddy · · Score: 5, Insightful
    They sat on their laurels too long under Ballmer and watched the market expand while they sat on the sidelines. They laughed at the iPhone when it first came out. Rather than putting Office on the iPad, they held it hostage to "protect" Windows. Five plus years later, they may finally do it. How much revenue did they give up there?

    They chased Google with Bing. They've chased Apple with the Zune, their music store, and their Windows Phone. They put the name Windows on everything - their cloud, their phone, their ARM tablet, and their regular PC OS, even though all those products are different. They are a MESS. Good luck to Satya - he will need it.

    1. Re:Microsoft, the former leader by bogjobber · · Score: 2

      They're a mess that had $77.85B in revenue last year ($21.86B net), $68B cash-in-hand, and one of the two or three best brands in the world. It will still be a tall order, but you don't need luck when you have those kind of resources.

  5. better headlines... by Gravis+Zero · · Score: 4, Funny

    Microsoft Becoming Desperate to Sell Window 8.1
    Microsoft Losing Badly in Tablet Market
    Chromebooks Out of Microsoft's Extortionary Reach
    Microsoft Discovers Battery Life Is Very Important On Tablets
    Microsoft Is Getting "Scroogled"
    Microsoft Just Got the Facts

    --
    Anons need not reply. Questions end with a question mark.
  6. Re:Ah yes... by danbob999 · · Score: 3, Insightful

    Just because Apple includes the price in their PC doesn't mean it's free. It is not free if you want to run OS X on a non-Mac PC.

  7. Device I want Windows on by randomErr · · Score: 2

    I would love to see Windows on BeagleBone Black. It would show that even cheap devices get the love of Windows and open the Windows store. Also it would look great for kids to experiment with Windows on a $45 computer. At the very least Microsoft could release that micro-kernel version of Windows for hobby/development devices and open up Visual Studio for development.

    --
    You say things that offend me and I can deal with it. Can you?
  8. Google top honchos are strategic masters by 140Mandak262Jamuna · · Score: 5, Interesting
    I can only marvel at Google at its strategic moves. Sun tried to fight Microsoft with Java and got clobbered. Google rightly realized as long as MSOffice is delivering cash like a firehose, it would be impossible to fight it. It went on a long term plan with bare mininal Google Docs, then with Google apps to pinch the money supply. It leveraged the connectivity by making collaboration front and center of office tools. Microsoft did not reduce price fast enough, or introduce network features fast enough. They were resting in laurels and now MsOffice monopoly does not look as monolithic as it did when we were discussing the ODF vs OOXML fights.

    It participated in the spectrum auction and made the telcos pay near market rates. It bought dark strands of the fiber network after the market crash to protect itself from local last mile ISPs from holding it for ransom.

    It talked to WhatsApp, made an offer of 10 billion with lots of poison pills. It set the floor at 10 billion, leaving all the smaller players aside. It knew Facebook was despo and will buy WhatsApp, but it boosted the price and made Facebook pay dearlym 35% of cash on hand!. Please disregard the 19 billion dollar figure. That is based on overpriced FB stock price. That Facebook will be strapped for money in the coming year for other aquisitions is the key victory for Google.

    WhatsApp's 450 million users includes millions who create new accounts every year when their old free for the first year accounts expire. Those users are penny, nay, paisa pinchers who use WhatsApp to avoid international texting charges between India and the Gulf countries and Singapore. They use WhatsApp to broadcast their texts to N recipients paying 1 outgoing text charge. In India incoming calls and texts must be free by law. Only the sender pays. 2 dollar per user? You can't chisel 2 rupees out of them. Anyway WhatsApp has no advantage when it comes to smartphones. Its explosive growth was due to it being the portal to the intenet for dumb phones via SMS. That market is done.

    Unorganized linux tried to scare Microsoft with netbooks. Microsoft hit back and evenutally killed the netbooks market, though it had to extend XP's life to do so. But Google resurrected the netbooks markets, and is forcing Microsoft to engage in price war again. Given the drop dead simplicity of the Chromebook, and low cost by eschewing the bells and whistles of the tablet market, it is very difficult to see anyone make any serious money off them. But it hampers the others from raising their profit margins.

    Google plays the strategic game stupendously well.

    --
    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
  9. Surprised... by QuietLagoon · · Score: 2

    I was surprised that Microsoft was charging $50 per copy to the OEMs. That's quite expensive.

  10. Required load by symbolset · · Score: 2

    Still comes with a horridly insecure browser integrated into the OS that is incompatible with their previous browsers and enterprise web apps and cannot be removed. Still prohibits preinstall of alternative browsers, search engines. Still prefers Outlook.com sign in. Is still Windows. Seems like they still have a few issues to work through.

    --
    Help stamp out iliturcy.
  11. Re:Ah yes... by The+Grim+Reefer · · Score: 2

    As in Beer or Speech?

    Considering this is Apple we are talking about, it goes without saying that it's not "free as in speech", doesn't it? Or have they suddenly embraced GPL and I missed it?

    It's also not "free as in Beer" either. Otherwise I wouldn't be required to purchase their product first.

    So, it's not free at all.

  12. Re:Ah yes... by fuzzyfuzzyfungus · · Score: 3, Interesting

    As much as I'm pleased to (for the newer gear) not have to fuck around with innumerable license keys and so on, Apple licensing is actually obnoxiously inflexible, and very consumer oriented. At work, I've become the mac-wrangler-by-default because most of the rest of the department are Microsofties from way back. Fine by me, more variety, more experience, all good. And the desktop and laptop gear is pretty good. Impressive industrial design, not too many freaky issues (though opendirectory is still a pale shadow of ActiveDirectory and Group Policies. Those things can be a byzantine mess; but they sure are powerful).

    However, there are some rough edges: You need to buy new gear to replace or expand an existing lab/laptop rollout? Well kid, I'm afraid that Apple's OS support is as follows: The earliest supported OS is whatever the machine shipped with. The last supported OS is the version before the version that has your model in the 'installer will refuse to try' list. Oh, you wanted to expand a lab running OSX version N-1 without upgrading the entire lab to version N? That's so sad, good luck.

    Even more vexingly, Apple has largely left the server business (they don't have a single device with redundant PSUs, their 'preferred' OSX Server config is a mac mini with two HDDs); but they steadfastly refuse to simply sell licenses that 'bless' VM instances(not running on physical macs) to run OSX Server. For $1000, they'll ship me their little mini, with its two laptop drives and OSX Server; but they don't even offer a 'keep your shiny little toy and enjoy the higher margins, just let me spin an OSX VM on my institution's preexisting, high-reliability, physically-distributed, high-uptime, SAN-backed, etc, etc. VM infrastructure. We have the cores, we have the RAM (with ECC and stuff, crazy!), we have the SAN, with the fancy disk monitoring and redundancy features. Why won't you take our damn money?

  13. Re:Chromebook by fuzzyfuzzyfungus · · Score: 3, Interesting

    Linux will inherit the Earth. Tremble, M$ Office paperclip.

    Not that it's a real problem, Linux is a decent embedded OS(arguably markedly worse than some designed for the purpose at Hardcore Embedded Stuff; but familiarity and smooth scaling from fairly tiny embedded systems to supercomputers counts for a lot); but the 'ChromeOS' is something of a historical irony:

    Remember, back in '95, when Marc Andreessen threatened that Netscape would reduce Windows to a "poorly debugged set of device drivers"? That struck MS as plausible enough that they squished Netscape as hard as they could and (slowly) got off their ass on IE development; but look upon ChromeOS, and observe the OS reduced to a set of device drivers by the browser..

  14. Re:Chromebook by Zaiff+Urgulbunger · · Score: 2

    Linux will inherit the Earth. Tremble, M$ Office paperclip.

    The hilarious thing about this is that there's someone as MS who has decided that the best way to approach the problem of Android/ChromeOS taking their market share is to... compete on price. Because that's going to work isn't it?

  15. Did the same thing with Netbooks by rahvin112 · · Score: 4, Insightful

    They did the same with netbooks. Discounted to $15, then used the $15 price to force the OEM to reduce the specs. Once they got the specs to the point of garbage and sales started to drop off they raised the price a bit, rinse and repeat until the entire market is gone. That's what happened to netbooks, incredibly popular until MS deliberately destroyed the hardware requirements so that no on wanted them anymore. Everyone that bought a netbook and hated it? That was Microsoft ensuring they were underpowered pieces of garbage.

    The best tricks are the old tricks.

    1. Re:Did the same thing with Netbooks by marcosdumay · · Score: 2

      This time it's not "netbooks", it's "Chromebooks". While that does not make any difference at all, MS can't use the name "Chromebook", and can't confuse people about what they are buying.

      This time, all that MS will get is another "Windows products are the worst available", like they got in phones and tablets.

  16. Re:Chromebook by Bing+Tsher+E · · Score: 2

    Cost of ownership is more than the price of the actual software. Microsoft isn't out of the woods yet, but don't kid yourself if you think they don't have the staff, support, and mindshare to roll out something that lots of people want to use.

    Google is a very casual operation with regard to the software they provide to consumers. Android is rather fragmented now, and you only see ChromeOS being sold on the lowest-price but also lowest-end hardware on a retailer's shelf. And Google's history of abandoning projects that don't pan out makes many people nervous.

    Also, the VM model they've adopted for Android will allow for lots of other vendors to produce VMs to run their Apps. I could forsee Microsoft producing a 'Gaming VM' that allows all the nice little games in Googles App Store to run in sandboxes on Windows.

  17. Re:Ah yes... by JonBoy47 · · Score: 2

    Free as in beer... Apple has wisely realized that most users care more about the user experience, and having the system meet their needs, then they do about the nebulous freedom RMS says they need to care about more than these the actual, you know, usefulness of their device. Besides, running OSX on non-Apple hardware is a violation of the software's EULA...

  18. Re:Ah yes... by JonBoy47 · · Score: 2

    Regarding the selling of VM licenses: Apple is primarily a hardware company. Yes, they make software, but that's just to make the hardware work better and look shinier, and thus more appealing to consumers. The fact that you can "only get that software on pricy Apple hardware" is, arguably, the major pillar propping up the sales of their well-made, but outrageously pricy hardware. The "Hackintosh" phenomenon has already demonstrated that, if you're not concerned about slick industrial design (or EULA compliance), it's completely possible to build a working OSX computer for half what Apple charges for similar hardware specs.

    Making a version of OSX that would run on VM's would necessarily require the OS to not perform the "Am I being installed on blessed Apple hardware?" check. Setting up a Hackintosh would be trivial, compared to the current level of effort required. Apple likely fears that someone would actually mount a serious (and potentially successful) legal challenge to the "only run it on Apple-branded HW" clause of their EULA. If that clause of the license were invalidated, the Hackintosh floodgates, including "store-bought" variants would be opened, and Apple's Mac sales would be eviscerated. I imagine Apple has decided that ceding the server market to competitors is a small price to pay for the continued sales (and fat margins) on their consumer machines.