Microsoft slashes Windows Vista prices
By Steven Parker, 29 February 2008 - 11:06 49 comments
Microsoft put up a Q&A on PressPass with Brad Brooks. He's the CVP of Windows Consumer Product marketing, and he announced that Microsoft is dropping the price of retail-packaged product (RPP) versions of Windows Vista when the SP1 version hits the shelves in a few weeks. From the interview:
PressPass: What did you announce today?Brooks: Today we announced a variety of price reductions for copies of Windows Vista sold on retail shelves. In developed markets, the price changes will most notably impact upgrade retail versions of the new editions we introduced in 2007 -- Windows Vista Home Premium and Ultimate editions. In emerging markets, we are combining full and upgrade Home Basic and Home Premium versions into full versions of these editions and instituting price changes to meet the demand we see among first-time Windows customers who want more functionality than is available in current Windows XP editions. In addition, we are also adjusting pricing on Windows Vista Ultimate in emerging markets to be comparable to price changes developed market customers will see.
These price changes will take effect globally with the retail release of Windows Vista Service Pack 1 later this year, though some markets will see reduced prices sooner as a result of promotions many of our partners already are driving, such as Amazon.com in the United States.
Ina fried at News.com has the details. Windows Vista Ultimate drops 27% from $299 to $219, and Home Premium drops 19% from $159 to $129. I think this is great news, and will make Vista a bit more accessible. It also makes Vista Home Premium the same price as Apple's OSX 10.5, which might explain that particular price point.
Link: Press Release @ PressPass

Comments (49)
+Chicane-UK - 29 February 2008 - 11:29
Good news, though Microsoft should have never launched Vista at the prices it launched at.
OEM copies represent good value for money without doubt (Vista Home Premium is £60 at Amazon) - but the retail packaged versions do not (£218 for the retail version of Home Premium at Amazon!).
I wonder how aggressive the price cuts will be?
leesmithg - 29 February 2008 - 13:54
Yes, I have just purchased a 64 bit version of Windows Vista Home Premium. (£69.48)
Also a SANDISK CRUZER MICRO 8Gb U3 READYBOOST Drive for £20.99 to add to my 4gb of r.a.m.
O.E.M. I guess is a saving and if you built your own a better idea than retail.
I am sure if my m.o.b.o. dies a week after installing the o.e.m. disk m$ don't mind.
I may or may not use Vista for myself, maybe a machine for my fiance.
Will install when sp1 comes around.
excalpius - 01 March 2008 - 06:33
$200 for Vista Ultimate. No other version or price is needed. Period.
bobbba - 29 February 2008 - 11:34
Source EnGadget:
"Ultimate full looks to be officially headed down to $320 from $400, and the upgrade is down to $220 from $260; Home Premium is now at $130 from $160."
I wonder if the OEM proces will be cut as well?
+Smigit - 29 February 2008 - 11:40
I doubt they'll cut OEM prices but it'd be nice. But I think OEM is priced fine to be honest, it's the huge gap between OEM and Retail of something like 3 - 3.5x price difference (off my head for Australian pricing) which needs to be addressed. I'm more than happy to pay what they charge for the OEM but.
jbarcus81 - 29 February 2008 - 11:41
Good news... Is there any difference, besides packaging, between Retail and OEM?? I was thinking of getting an OEM release.....
Neobond - 29 February 2008 - 11:44
The OEM version is usually just a book sealed in plastic with the cd in a sort of cardboard envelope, whereas the retail version is those nice plastic dvd packaging we saw when it first came out.
testman - 29 February 2008 - 11:50
Just the licence. OEMs can only be used on one machine only, they cannot be transferred to another PC/laptop.
m-p{3} - 29 February 2008 - 13:07
If you plan to change your PC often, you don't want an OEM version.
fergiej - 29 February 2008 - 13:49
I bought 3 OEM copies pretty much at launch time last year. Only 2 are actually installed so far, but on each of those machines I have upgraded as little as a HDD or memory with no problems. I completely rebuilt the machines from scratch with new MB, Mem and processors. One machine will not activate over the internet no matter how little I upgrade. The other activates over the internet no matter how much I upgrade. It's strange. But the otehr one activates over the phone no problem every time. The OEM can't be swapped out deal is a little overblown.
Foub - 29 February 2008 - 13:58
Sometimes not even on the same PC/laptop even if you just install a driver update.
RAID 0 - 01 March 2008 - 06:58
I can't believe no one said this yet...
The MAIN difference between retail and OEM is that with a retail copy of Vista (or XP) you get Microsoft support. If you buy the OEM copy, you have to support it yourself or have the "OEM" support it. Like Dell or HP etc.
Yogurth - 29 February 2008 - 11:48
Has this ever happened with Microsoft's OS during it's lifecycle? If not it means that reality kicked in in MS headquarters, due to poor Vista market penetration.
Neobond - 29 February 2008 - 11:56
I don't ever recall a dramatic price drop like this after less than 2 years on the market, its been on shelves for just over a year hasn't it? Jan 2007 I believe after it RTM'd in Nov 2006.
+Chicane-UK - 29 February 2008 - 12:05
Apple did it with the iPhone after barely a month! And it was very dramatic!
zoonyx - 29 February 2008 - 12:09
Apple did it with the iPhone after barely a month! And it was very dramatic!
Yeah now you see the original post replied to? Note the Microsoft, I'm not sure... but I suspect the iPhone isn't a MS product.
+Chicane-UK - 29 February 2008 - 12:24
Sorry - I didn't see the specific mention of Microsoft OS products. I was just trying to cite an example of another tech product that had a dramatic price drop!
My mistake
PGHammer - 29 February 2008 - 13:34
While not as large, a similar price adjustment occurred with the introduction of Windows XP's Service Pack 2 (which was followed shortly thereafter with the introduction of Windows XP Media Center Edition 2005 to the System Builder channel); an even earlier example is with *Windows NT 4.0*, which saw price adjustments after the release of Service Pack 6. However, while there have been *numerically* more Windows Vista licenses (both retail and upgrade) sold than Windows XP licenses in the same period of time, percentages of the overall PC market are down (while not significantly down, they are down). The fact that some of those non-Vista sales are of Windows XP is being spun by some as a sign that Vista is a failure. Then what would they have called the continuing sales of Windows 2000 Professional (and even Windows Me) one year after Windows XP went RTM? What would they have called the incredibly poor reception with which XP Home Edition was greeted throughout its lifetime?
Further, while Vista's price drop is unusually large, it's not even the largest price drop in terms of PC-related *anything* this year. That honor, ladies and gents, goes to *Intel*, with their current round of price cuts on Core2 and Pentium Dual-Core processors (which has led to some particularly wacky pricing, such as sub-$200 retail-boxed Core2Quads and even sub-$100 Core2Duos). So, in other words, it looks like Microsoft and Intel want to get their piece of those stimulus checks being mailed out in a few months.
JamesWeb - 29 February 2008 - 12:25
They should be slashing the price in the US and putting it up in the EU, it's only fair!
GFree - 29 February 2008 - 12:49
Bah! I will not be happy until I can buy Windows for FREE!
/slams fist on table
Now where's the scotch? I need more scotch damnit!