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ZippyDSMlee's picture
Joined: 2006-09-30

[QUOTE]Microsoft vies for budget laptop market with XP price cuts

By Ryan Paul | Published: May 11, 2008 - 10:55PM CT

Microsoft plans to offer hardware vendors significant price cuts on Windows XP licenses for low-cost computing products, but the deal will only be available for computers with low hardware specs. This tactic is part of Microsoft's strategy to stifle adoption of Linux by computer manufacturers that are targeting the budget market, where low cost and high flexibility give the open source operating system an edge.
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The popularity of the game-changing Asus Eee PC, which ships with a heavily-modified version of the Xandros Linux distribution, spawned a whole new class of inexpensive computers. Other vendors have entered the market with their own competing products, many of which also use the open source operating system. Windows is a poor fit for such computers, which are designed and priced like budget appliances. Vista requires too much hardware overhead, while Windows XP licenses add extra expense to the budget hardware that can be avoided by using Linux. So as products like the Eee bring Linux into homes and schools, Microsoft has struggled to squeeze into the growing budget hardware niche.

According to IDG, which obtained details about the price cuts from hardware vendors, Microsoft will offer Windows XP licenses for $26 for developing countries and $32 for the rest of the world. In order to qualify for these deep discounts, products will have to be limited to a maximum of 1GB of RAM, 10.2 inch screens, and single-core processors clocked no higher than 1GHz (though there are apparently some exceptions). Products must also not have hard drives exceeding 80 GB in capacity and cannot have touch-screen technology.

The offer will likely attract some interest from hardware vendors, but it suffers from some serious strategic weaknesses. Microsoft is only making this deal available for Windows XP, a seven-year-old operating system that is on its way out. Microsoft originally planned to stop selling Windows XP on June 30, but it has made a special exception for budget computing products. Compared to Microsoft's legacy operating system, modern Linux distributions offer a more future-proof option and more comprehensive software stack.

Microsoft has seen some modest success with Windows XP Starter Edition, a crippled version of the operating system that is designed for developing countries which has been sold for similar prices. Microsoft's XP price cut strategy seems like a new angle on the Windows XP Starter Edition concept. Instead of crippling the operating system, Microsoft is providing the real thing, but with caps on the hardware it can run on. This might buy Microsoft some time, but the relative age of Windows XP and the hardware overhead of Windows Vista make this move unsustainable in the long term.[/QUOTE]

Wow MS..... you SUCK...can;t sale XP/XPpro for under 100 and let the market decide what it wants eh?

its dckary like this that makes me buy OEM and used.....cracking where needed.
WIndose 7, 3 years and counting.
bai bai ME2(vister) you wont be missed........
Now we have Windose potted meat variant, so spam or treat?

I like Windose treat...because its the most magical meat.


Ah modern gaming its like modern film only the watering down of fiction and characters is replaced with shallow and watered down mechanics, gimmicks and shiny-er "people".
Incoherence is my friend and grammar my bane, which is the fulcrum of suffering I place upon others!:ZippyDSMlee

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