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



There are 49 additional comments
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(2 replies) Quote this comment Reply to this comment #1 Posted by Chicane-UK on 29 Feb 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?
Quote this comment #1.1 Posted by leesmithg on 29 Feb 2008 - 13:54
Yes, I have just purchased a 64 bit version of Windows Vista Home Premium. (£69.4

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.

Quote this comment #1.2 Posted by excalpius on 01 Mar 2008 - 06:33
$200 for Vista Ultimate. No other version or price is needed. Period.
Quote this comment Reply to this comment #2 Posted by bobbba on 29 Feb 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?
Quote this comment Reply to this comment #3 Posted by Smigit on 29 Feb 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.
(6 replies) Quote this comment Reply to this comment #4 Posted by l33txp on 29 Feb 2008 - 11:41
Good news... Is there any difference, besides packaging, between Retail and OEM?? I was thinking of getting an OEM release.....
Quote this comment #4.1 Posted by Neobond on 29 Feb 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.
Quote this comment #4.2 Posted by testman on 29 Feb 2008 - 11:50
(l33txp said @ #4)
Good news... Is there any difference, besides packaging, between Retail and OEM?? I was thinking of getting an OEM release.....

Just the licence. OEMs can only be used on one machine only, they cannot be transferred to another PC/laptop.
Quote this comment #4.3 Posted by m-p{3} on 29 Feb 2008 - 13:07
If you plan to change your PC often, you don't want an OEM version.
Quote this comment #4.4 Posted by fergiej on 29 Feb 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.
Quote this comment #4.5 Posted by Foub on 29 Feb 2008 - 13:58
(testman said @ #4.2)
Just the licence. OEMs can only be used on one machine only, they cannot be transferred to another PC/laptop.


Sometimes not even on the same PC/laptop even if you just install a driver update.
Quote this comment #4.6 Posted by RAID 0 on 01 Mar 2008 - 06:58
(l33txp said @ #4)
Good news... Is there any difference, besides packaging, between Retail and OEM?? I was thinking of getting an OEM release.....


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.
(5 replies) Quote this comment Reply to this comment #5 Posted by Yogurth on 29 Feb 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.
Quote this comment #5.1 Posted by Neobond on 29 Feb 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.
Quote this comment #5.2 Posted by Chicane-UK on 29 Feb 2008 - 12:05
I don't ever recall a dramatic price drop like this after less than 2 years on the market


Apple did it with the iPhone after barely a month! And it was very dramatic!
Quote this comment #5.3 Posted by zoonyx on 29 Feb 2008 - 12:09
(Chicane-UK said @ #5.2)
I don't ever recall a dramatic price drop like this after less than 2 years on the market


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.
Quote this comment #5.4 Posted by Chicane-UK on 29 Feb 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
Quote this comment #5.5 Posted by PGHammer on 29 Feb 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.
Quote this comment Reply to this comment #6 Posted by JamesWeb on 29 Feb 2008 - 12:25
They should be slashing the price in the US and putting it up in the EU, it's only fair!
(1 reply) Quote this comment Reply to this comment #7 Posted by GFree on 29 Feb 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!
Quote this comment #7.1 Posted by Smigit on 29 Feb 2008 - 12:53
free scotch?
(1 reply) Quote this comment Reply to this comment #8 Posted by Titoist on 29 Feb 2008 - 12:58
Hopefully its better than Apple price cuts. "Save $5 off every MacBook Pro purchase" - Eaton Center Apple Store, Xmas holidays
Quote this comment #8.1 Posted by nX07 on 29 Feb 2008 - 13:41
ahaha I seen that too I believe ahaha. It even was a MIR was it not? LOL
(5 replies) Quote this comment Reply to this comment #9 Posted by CoolBits on 29 Feb 2008 - 13:45
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.

You cannot compare OSX to Vista Home Premium as OSX comes as a ful featured version... you should compare it to Vista Ultimate not Home Premium
Quote this comment #9.1 Posted by hewitt s. on 29 Feb 2008 - 14:25
(CoolBits said @ #9)
You cannot compare OSX to Vista Home Premium as OSX comes as a ful featured version... you should compare it to Vista Ultimate not Home Premium


Microsoft has multiple editions of Windows because they make more money this way. Nothing wrong with making money. However it's a little ridiculous that Vista has 7 Editions.
Quote this comment #9.2 Posted by majortom1981 on 29 Feb 2008 - 14:54
You cant compare vista to osx because you cant install osx on non apple pcs. so if yo uwanted to for somebody like me osx would cost $1000 + plus for me comapired to home premium because I dont have a mac.
Quote this comment #9.3 Posted by bluarash on 29 Feb 2008 - 15:29
I really second the last post. Due to Apple tying the hardware and software together, to own a legal Mac you have to buy the whole setup. This places the cheapest Mac (not counting buying used, a hack of the Apple TV and education discounts) at $599.

Mac mini
1.83GHz Intel Core 2 Duo
2MB shared L2 cache
Memory 1GB (two 512MB) of 667MHz DDR2 SDRAM (PC2-5300)
Option: Up to 2GB
80GB Serial ATA, 5400 rpm
Option: Up to 160GB
Optical drive2 24x Combo Drive (DVD-ROM/CD-RW)
Intel GMA 950 graphics processor with 64MB of DDR2 SDRAM shared with main memory3
BYODKM

So basically for $599 you are getting a very weak Core 2 Duo, almost no memory, no storage and you can't even burn a DVD. Not to mention that it has a very dated graphics chipset that uses system memory. If you want to use OSX legally, however, this is pretty much the entry level system. Pathetic...

$799 for 2.0GHz C2D, 120gig and a DVD burner (pretty much standard on a $500 PC).
Quote this comment #9.4 Posted by RAID 0 on 01 Mar 2008 - 07:00
(bluarash said @ #9.3)
I really second the last post. Due to Apple tying the hardware and software together, to own a legal Mac you have to buy the whole setup. This places the cheapest Mac (not counting buying used, a hack of the Apple TV and education discounts) at $599.

Mac mini
1.83GHz Intel Core 2 Duo
2MB shared L2 cache
Memory 1GB (two 512MB) of 667MHz DDR2 SDRAM (PC2-5300)
Option: Up to 2GB
80GB Serial ATA, 5400 rpm
Option: Up to 160GB
Optical drive2 24x Combo Drive (DVD-ROM/CD-RW)
Intel GMA 950 graphics processor with 64MB of DDR2 SDRAM shared with main memory3
BYODKM

So basically for $599 you are getting a very weak Core 2 Duo, almost no memory, no storage and you can't even burn a DVD. Not to mention that it has a very dated graphics chipset that uses system memory. If you want to use OSX legally, however, this is pretty much the entry level system. Pathetic...

$799 for 2.0GHz C2D, 120gig and a DVD burner (pretty much standard on a $500 PC).



You speak the truth.
Quote this comment #9.5 Posted by ViperAFK on 01 Mar 2008 - 16:32
(bluarash said @ #9.3)
I really second the last post. Due to Apple tying the hardware and software together, to own a legal Mac you have to buy the whole setup. This places the cheapest Mac (not counting buying used, a hack of the Apple TV and education discounts) at $599.

Mac mini
1.83GHz Intel Core 2 Duo
2MB shared L2 cache
Memory 1GB (two 512MB) of 667MHz DDR2 SDRAM (PC2-5300)
Option: Up to 2GB
80GB Serial ATA, 5400 rpm
Option: Up to 160GB
Optical drive2 24x Combo Drive (DVD-ROM/CD-RW)
Intel GMA 950 graphics processor with 64MB of DDR2 SDRAM shared with main memory3
BYODKM

So basically for $599 you are getting a very weak Core 2 Duo, almost no memory, no storage and you can't even burn a DVD. Not to mention that it has a very dated graphics chipset that uses system memory. If you want to use OSX legally, however, this is pretty much the entry level system. Pathetic...

$799 for 2.0GHz C2D, 120gig and a DVD burner (pretty much standard on a $500 PC).


I built my PC for 600 bucks recently, all parts from newegg.

X2 5000+ 2.6 GHz
4 GB DDR2 800
512MB x1950PRO
250 gb HDD (7200RPM 16 MB Cache)
DVD burner
Windows vista home premium OEM

that mac is a ****ing ripoff
Quote this comment Reply to this comment #10 Posted by hewitt s. on 29 Feb 2008 - 14:18
The retail price of Vista jumped a lot compared to what XP was sold for. I can understand Microsoft wanting to recover some of those development costs, but Windows was already priced too high prior to Vista's release. This is a good change.
Quote this comment Reply to this comment #11 Posted by EduardValencia on 29 Feb 2008 - 14:33
OMG,this is good news,perhaps sales will peak up
(3 replies) Quote this comment Reply to this comment #12 Posted by qrich19 on 29 Feb 2008 - 18:19
sounds like microsoft are getting desperate!
Quote this comment #12.1 Posted by daniel_rh on 29 Feb 2008 - 18:48
If a desperate Microsoft means lower prices then I WANT A DESPERATE MICROSOFT all the time!!

Anyway... retails sales only represents 5-10% of Microsoft sales, so... They only want to help Vista a little more, I don't think it is a desperate action. I think the new prices are right.
Quote this comment #12.2 Posted by toadeater on 01 Mar 2008 - 04:10
(daniel_rh said @ #12.1)
If a desperate Microsoft means lower prices then I WANT A DESPERATE MICROSOFT all the time!!


I'd rather have products worth buying.
Quote this comment #12.3 Posted by RAID 0 on 01 Mar 2008 - 07:01
(toadeater said @ #12.2)
(daniel_rh said @ #12.1)
If a desperate Microsoft means lower prices then I WANT A DESPERATE MICROSOFT all the time!!


I'd rather have products worth buying.


You mean somerthing like the Xbox and Xbox 360?
Quote this comment Reply to this comment #13 Posted by ]SK[ on 29 Feb 2008 - 18:42
Make it cheaper and expect more people to think about purchasing your product. I mean hell, it worked for the PS3! GG MS.
(2 replies) Quote this comment Reply to this comment #14 Posted by scaramonga on 29 Feb 2008 - 18:44
They could sell it at $5 a copy, and I still wouldn't touch that piece of s**t.
Quote this comment #14.1 Posted by daniel_rh on 29 Feb 2008 - 18:49
Linux/Mac fan, anyone? or a frustrated Microsoft's user?

More than 100 millions of piece of sh!t in the world... A truly success for a piece of sh!t

Last edited by daniel_rh on 29 Feb 2008 - 18:56
Quote this comment #14.2 Posted by SleeStak on 29 Feb 2008 - 21:27
(scaramonga said @ #14)
They could sell it at $5 a copy, and I still wouldn't touch that piece of s**t.


wow took all the way till the 14th post to see one of the Vista is a piece of s**t posts...I'm in shock
(2 replies) Quote this comment Reply to this comment #15 Posted by Chrono951 on 29 Feb 2008 - 19:14
The timing seems almost perfect for this, seeing as SP1 is lauching now. Although the prices were too high to begin with.
Quote this comment #15.1 Posted by JamesWeb on 29 Feb 2008 - 22:32
Well yeah, it says in the article the price drops are to co-incide with the release of SP1.
Quote this comment #15.2 Posted by JamesWeb on 29 Feb 2008 - 22:49
Double post! LEG IT!
Quote this comment Reply to this comment #16 Posted by mad_cow40 on 29 Feb 2008 - 19:55
cool still dont want one im happy with the old man xp
Quote this comment Reply to this comment #17 Posted by .kvn on 29 Feb 2008 - 20:39
Any price drop would be a welcome. Vista is just too expensive for an OS that has proven itself not ready for mass distribution.
(2 replies) Quote this comment Reply to this comment #18 Posted by qrich19 on 29 Feb 2008 - 23:54
i have it on duel boot, only use it when i want to surf and IM. its too slow for games.
Quote this comment #18.1 Posted by RAID 0 on 01 Mar 2008 - 07:03
Translation: My hardware is not good enough for the games I'd like to play.
Quote this comment #18.2 Posted by milesfromordinary on 03 Mar 2008 - 19:27
lol @ raid.

i find vista's game performance the same if not better than on xp.

and i dont have a dream computer.
Quote this comment Reply to this comment #19 Posted by stockwiz on 01 Mar 2008 - 12:08
Nice, but until they get rid of the forced phone activation when changes are detected and just have some sort of automated online system, I won't encourage people to buy vista.
Quote this comment Reply to this comment #20 Posted by DarkSim905 on 02 Mar 2008 - 01:44
No idea why people are complaining about the price of Vista; when XP is still up there:
http://www.newegg.com/Product/Product.aspx...N82E16837116195
http://www.newegg.com/Product/Product.aspx...N82E16837116193
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