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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."

16 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 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!
    3. 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 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.

  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 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.

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      sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
    2. 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.

  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. 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.

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    sed -e 's/Chuck Norris/Rajnikant/g' joke > fact
  8. 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?

  9. 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..

  10. 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.