Microsoft Corp. announced Thursday that prices for Windows 7 operating system are largely in line with those of Vista, and that consumers who buy PCs before the new system will be available in October will receive free updates.
To drum demand among people who are not in the market for a new PC, Microsoft also said it was borderline pre-orders for Windows 7, the sale of some for as little as $ 50.
Microsoft Windows 7 is the first operating system nearly three years. With Vista, Microsoft has done under the bonnet of technical changes that have left other software companies and device makers scrambling to make their products work with new computers. Many do not work in Vista launch in January 2007, people also complained the new system was low.
Microsoft promises a better launch of Windows 7, in part because it is not a radical departure from Vista.
People who have tested the near-final versions say the boots and Windows 7 is faster and spends less time nagging the user to alerts and pop-ups merely Vista. It also tries to make it easier for people to navigate to frequently used Web sites, documents and tasks.
For customers who buy new machines, the cost of Windows software is usually included in the purchase price. The prices announced Thursday are people who buy Windows separately or upgrade from older versions.
Consumers who buy Windows Vista Home Premium, Business or Ultimate starting Friday computers can communicate with the PC manufacturer for a free update for Windows 7 will be available on October 22. Windows Vista Home Basic is not eligible for the upgrade. The offer will run through January 2010.
Microsoft saves only about half the revenue it receives from the sale of those copies of Windows Vista before Windows 7 launches. The rest, about $ 200 million to 300 million turnover, will be recognized in the neighborhood, once the updates have been distributed or the program ends, whichever comes first.
The Redmond, Wash.-software maker said it will cost $ 120 for people to upgrade their machines to Windows 7 Home Premium version, $ 10 less than the comparable upgrade to Windows Vista. Updates for the Professional and Ultimate versions cost $ 200 and $ 220 respectively, the same as Vista.
In comparison, Apple Inc. said in early June that update to its newest operating system, Mac OS X called Snow Leopard, will cost $ 30.
The cost is the same regardless of the machine has been updated with Windows XP or Windows Vista.
Versions to be installed from scratch on a computer that costs $ 200, $ 300 and $ 320 for Home Premium, Business and Ultimate.
Home Premium includes the updated look and feel introduced with Vista, a new system for home networking, the ability to create DVDs and other characteristics. Professionals, the next level, adds features to help people who may have to work from home or use their computer to work on the road. Ultimate is an all-but-the-kitchen sink edition with added data security and other features most frequently requested by large companies.
Microsoft pushes versions, but it is more than three hours: Starter, Home Basic and Enterprise. Starter does not include updating the look of Vista or Windows 7 and is only available pre-installed by computer manufacturers of certain types of equipment, such as netBook. Home Basic is only available in developing countries. Enterprise is sold through volume licensing agreement for large enterprise customers.
Vista of low reception prompted Microsoft to extend the life of Windows XP, an old system which is less profitable for the software manufacturer.
This time, sales at the beginning of the goose and build buzz, Microsoft is cutting the price of Windows 7 by about half for those who pre-order upgrade software to Home Premium ($ 50 ) and Professional ($ 100).
The sale will begin Friday in the United States, Canada and Japan, and July 15 in the United Kingdom, France and Germany. It will last about two weeks or as long as allocated copies of the software last.
People can buy the software on the download site from Microsoft or at retailers including Best Buy Co. Inc., who said it is limiting sales to three per customer.
Microsoft would not say how much it will cost to upgrade from a lesser version of Windows 7 to a more robust. The company also refused to say that Windows 7 will be the price of netBook, a popular category of small, cheap laptops. The low prices are possible partly because they are older, less expensive Windows XP.
Microsoft said this month he made a version of Windows for Europe, which does not come with Internet Explorer web browser, in an attempt to push the sanctions of the antitrust rules there.
Brad Brooks, Corporate Vice President of marketing for Windows, said Microsoft has not had time to refine the software upgrade for Europe, it plans to sell the full version of Windows 7 for consumers of the European Union to upgrade prices at least through December.