Windows 8 will likely cost less than Windows 7

 

Yesterday, Microsoft put up an interesting post about Media Center and Windows 8. While the post gave a lot of insight on how the application will be used with Windows 8, there is a key takeaway from the post and that is that native DVD/Blu-ray playback will not be supported.

This is a big change because if Microsoft defers to third party applications to support these formats, the company does not have to pay the royalties associated with DVD/Blu-ray.

If Microsoft is cutting out the royalty payments, is the company looking to lower the cost of entry for Windows 8? The idea is not unheard of. We have already seen Apple drastically lower the cost for its operating system and Microsoft could be looking to do the same.

Another revenue stream for Windows 8 will be the Windows Store as Microsoft will be scraping 20% off of each purchase for its own coffers. Microsoft could be hedging its bets that you will likely purchase items from the store and as such, can use that revenue to offset the cost of entry for Windows 8.

What will the final cost of the OS be? The answer to that question is still unknown, but we would be surprised if it is even a penny more than that of Windows 7. Given the strategy outlined above, we fully expect Windows 8 to cost less than Windows 7 to lower the barrier of entry to try Microsoft’s dramatically different Windows experience. 

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My guess is it will be about $350AU for pro retail on day one.
I remember when Vista came out here in AUS.$600AU for retail Ultimate on day one.
Windows 7 was $450AU for retail Ultimate.

Anyways, I am going to go with Windows 8 on day one.

if they put it at 50... then instant win, and as much as I hate the start screen is a new os for a bargain, what else could we ask, oh yeah, free.

Wow, It just sunk it. If I buy Windows 8 I will not be able to play a DVD! OMG! That is crazy. I cant believe it. We understand why and how because we read this stuff, how will people not in this loop understand what is going on? They just purchased a shiny new PC from Best Buy, they were told it was the best money could buy for the price and it cant play a DVD??

derekaw said,
Wow, It just sunk it. If I buy Windows 8 I will not be able to play a DVD! OMG! That is crazy. I cant believe it. We understand why and how because we read this stuff, how will people not in this loop understand what is going on? They just purchased a shiny new PC from Best Buy, they were told it was the best money could buy for the price and it cant play a DVD??

I can just picture some one returning a machine to Best Buy and throwing it through the window like the lady in the tire commercial. I know I would!!

Nope,
I will not buy Windows 8 no matter how cheap it!

I still won't buy it! I've been what some may call a fanboy of Microsoft since the year 2000 when in my early twenties. I upgraded from XP to Vista and didn't have any issues like a lot of folks. Then Windows 7 came out and I almost wanted to give Microsoft my kidneys just for donation because it finally satisfied all of my computing needs. Now Windows 8! Damit Microsoft, I want my kidneys back! I've been using it for about 2 months now and I honestly don't see this as an upgrade to Windows 7. I honestly believe that Windows 7 will turn into XP with people staying with a simple OS that just works! Maybe Windows 9 will win back those kidneys!

The price of Windows 8 will be whatever the market will bear. It has nothing to do with the actual hard costs of producing it (except to set a floor, of course).

If the negative reaction to Windows 8 on the desktop is seen as a problem by MS, then will lower the price at release. If it isn't, they'll charge the same (or more) on release.

Windows 8 does have some nice things in it, but overall it is worth much less than Windows 7 hence the price should be much less. I won't be buying it though. I'll wait until there is more consistency with Windows 9

At the right price I would buy Windows 8, I did with Windows 7.
I look at the prices of Windows 7 in online stores now and would never pay them. I only bought Windows 7 because at the time I knew it was cheap.

Posting an article on how Windows 8 will "likely" cost less than Windows 7 just because they are dropping DVD support from WMC is... credulous to say the least. Gullible. Naïve.


Unless you were trying to say it will cost less TO MICROSOFT. Then that's true. But to the consumers? Hell no.

What's funny, is that some of the people who usually just pirate the OS, might have gotten a technet subscription. Sure they might have used the 10 keys for each product Microsoft use to give out longer than they should, but they would have at least given Microsoft "SOME" money ($300+) that they would have normally lost out on if the user decided to pirate the OS.

Now that Microsoft dropped the number of keyes from 10 down to 2 for each product, most likely the pirates will not pay Microsoft any money and just download it for free.

Having said that, I was planing on paying Microsoft for a technet subscription once Windows 8 got released. But now, I don't think i'm going to. I'll Probably end up just buying 1 copy of Windows 8.

Edited by warwagon, May 4 2012, 4:57pm :

warwagon said,
What's funny, is that some of the people who usually just pirate the OS, might have gotten a technet subscription. Sure they might have used the 10 keys for each product Microsoft use to give out longer than they should, they would have at least given Microsoft "SOME" money ($300+) that they would have normally lost out on if the user decided to just pirate the OS.

Now that Microsoft dropped the number of keyes from 10 down to 2, most likely the pirates will not pay Microsoft any money and just download it for free.

Having said that, I was planing on paying Microsoft for a technet subscription once Windows 8 got released. But now, I don't think i'm going to.

Seems simple enough, logic, sound. Not to Microsoft! Nope. Cutting number of keys from 10 to 2 will STOP PIRACY DEAD ON ITS TRACKS! Oh wait, it hasn't...? Oh...

Ahmed Nefzaoui said,
Arrrrrr most people won't buy a copy.. If you know what I mean ;-)
I don't know if people will even do that considering how much bashing there seems to be, if ye see my arrrrrgument!

Microsoft announces it's dropping it's windows 8 price by 20% which is a bargain for the consumers. We backed this up with a nice 30% increase in price for people living in the UK. So no it won't cost less, it will cost more in the uk at least.

why should Microsoft pay a license for DVD/bluray in windows on tablets or ultra-books? since those don't carry dvd or bluray players. would be pointless and a waste of money on their part. I think this is a good cost cutting move, this should at least increase their margins a bit.

In a world thats moving towards streaming it makes sense, as long as they provide an easy way of enabling it for a nominal fee.

I'm skeptical how much these royalties cost..you can buy a standalone DVD player for about £10 nowadays and they must be paying the royalties as well as all the hardware? Also the sheer size of microsoft probably means they pay pennys

DomZ said,
In a world thats moving towards streaming it makes sense, as long as they provide an easy way of enabling it for a nominal fee.

I'm skeptical how much these royalties cost..you can buy a standalone DVD player for about £10 nowadays and they must be paying the royalties as well as all the hardware? Also the sheer size of microsoft probably means they pay pennys


I've never seen a dvd player for that little. I've seen parts to do so, but they don't come with the software to enable decoding the data.

Also, keep in mind. There is much more to the Media Center pack than just dvd decoding. All of the licensing and certifications for CableCard etc.

MrHumpty said,

I've never seen a dvd player for that little. I've seen parts to do so, but they don't come with the software to enable decoding the data.

Also, keep in mind. There is much more to the Media Center pack than just dvd decoding. All of the licensing and certifications for CableCard etc.

I think all the stuff in Media Center probably adds ~$20 or more to the cost of a copy of Windows, I suppose we'll know when they price the media center pack later this year but that's my bet.

Besides, media center was MS's play for the living room using a windows HTPC but guess what? They're current, and way more successful play for the living room is the Xbox and so Media Center isn't key to them now, sucks but that's just how it works.

Just add DVR options to the Xbox and a few other things and it's set as the better HTPC imo.

MrHumpty said,

I've never seen a dvd player for that little. I've seen parts to do so, but they don't come with the software to enable decoding the data.

Cheapest one I found on Amazon Canada goes for about 13 pounds (21 CAD)

They will need to be more competitive in price as the tablet form factor will be more mainstream and they need to offer a package that competes with the iPad and Android devices. Cost cutting like this makes it much easier.

oceanmotion said,
They will need to be more competitive in price as the tablet form factor will be more mainstream and they need to offer a package that competes with the iPad and Android devices. Cost cutting like this makes it much easier.

Only the Ipad nobody uses Android as a tablet they are losing market share at crazy rate.

Melfster said,

Only the Ipad nobody uses Android as a tablet they are losing market share at crazy rate.

You have to have marketshare in order to lose it. Your comment does not make sense.

So errr it'll cost less than windows 7 but it'll have 30% extra cost here in the UK.
So no, it won't be cheaper than W7.

n_K said,
So errr it'll cost less than windows 7 but it'll have 30% extra cost here in the UK.
So no, it won't be cheaper than W7.

I'm curious why you'd say that?

torrentthief said,
i'd rather they give us an option to play dvd/blurays in WMP and we pay say £4 or so to unlock this.

lol coming from a guy name torrenthief LOLOLOL
I guess you'd be first in line looking for "DVD unlock" patch then eh

Great news and it makes sense because of the Windows Stores, and the ability to add less-important features separately.

Microsoft only added DVD support in Vista and 7 to encourage people to use Media Center. They didn't, and it's out of the OS so that's an extra 5-10 dollars profit. As for lowering the price? Not a chance. Balmer will drop 100 pounds of weight first.

ryokurin said,
Microsoft only added DVD support in Vista and 7 to encourage people to use Media Center. They didn't, and it's out of the OS so that's an extra 5-10 dollars profit. As for lowering the price? Not a chance. Balmer will drop 100 pounds of weight first.

You do realize the real price of windows and windows server has been going down for as long as I remember. The actual price has moved down and has never moved up with inflation.

window 7 will be my last OS if they dont changes things in the next windows

i have a feeling that window 7 will be turing in too a other window XP wish means evere one will be on window 7 more then window 8


after they stop doing updates for window 7 i may move too a mac or android or ipad

rojorojo said,
huh?

He said, "i have a feeling that window 7 will be turing in too a other window XP wish means evere one will be on window 7 more then window 8
after they stop doing updates for window 7 i may move too a mac or android or ipad."

Translated, he thinks that the direction that Windows 8 is taking will mean that Windows 7 will become the new Windows XP insofar as Windows 7 will continue to have a majority market share even when Windows 8 gets released. He follows on with his point by then stating that - if Microsoft don't change some of their decisions with Windows 8 - once the updates stop coming for Windows 7 he will be moving to a different operating system in protest.

snow777 said,
after they stop doing updates for window 7 i may move too a mac or android or ipad

After they stop doing updates for Windows 7 Microsoft may no longer even exist since they are destroying their market in favor of tablets that most people and businesses don't want or need (Their is no need to argue over this, this is a tech site, you are NOT the average person). Despite what people like to say the fact is things like the iPad are nothing more then a toy with very little use in business, and this is not just my opinion this is what everyone I know who has one says including CEO's, CIO's and people in marketing and other business areas.

On to the updates, XP came out in 2001 and SP3 is still getting updates until sometime in 2014, if they follow the same thing for Windows 7 were looking at 2022 or 2023 before they stop with updates maybe longer when Windows 8 tanks.

Intrinsica said,

He said, "i have a feeling that window 7 will be turing in too a other window XP wish means evere one will be on window 7 more then window 8
after they stop doing updates for window 7 i may move too a mac or android or ipad."

Translated, he thinks that the direction that Windows 8 is taking will mean that Windows 7 will become the new Windows XP insofar as Windows 7 will continue to have a majority market share even when Windows 8 gets released. He follows on with his point by then stating that - if Microsoft don't change some of their decisions with Windows 8 - once the updates stop coming for Windows 7 he will be moving to a different operating system in protest.

Which makes the argument irrelevant because it could be a decade before Win7 stops being supported. To state you'll move to a technology that is available today ten years in the future is invalid. We have no clue what will be around in ten years. Hence the "huh?" It just makes no sense. He should have said "I'll move to whatever is available and is best for my needs". Which is so generic it's not worth stating. To each their own though.

Zippo7 said,

After they stop doing updates for Windows 7 Microsoft may no longer even exist since they are destroying their market in favor of tablets that most people and businesses don't want or need (Their is no need to argue over this, this is a tech site, you are NOT the average person). Despite what people like to say the fact is things like the iPad are nothing more then a toy with very little use in business, and this is not just my opinion this is what everyone I know who has one says including CEO's, CIO's and people in marketing and other business areas.

On to the updates, XP came out in 2001 and SP3 is still getting updates until sometime in 2014, if they follow the same thing for Windows 7 were looking at 2022 or 2023 before they stop with updates maybe longer when Windows 8 tanks.

Tablets can increase productivity in many enterprise situations.

wixostrix said,

Tablets can increase productivity in many enterprise situations.

*Homer voice* Explain how *Homer voice*

Sorry, I just had to. I can think of many uses myself where the new UI can actually be very useful in the Enterprise, apps can use their tiles to give data readouts without needing to launch the app (Live readouts of server load for example). Combined with a few improvements to the traditional desktop like the new extended task bar would also be valuable.

That being said, business adoption of Win8 will most likely be low, but that is simply because most companies have either just moved or are just moving to Win7, companies tend to skip every other version of Windows, so adoption rate of Win9 will be higher if that trend continues.

snow777 said,
window 7 will be my last OS if they dont changes things in the next windows

I think they're testing the water with Windows 8, to see whether it would work or not. Who'd know it, if they didn't try it, despite it would be a failure or a success...

What's interesting to me now is how Windows 9 will look like...

mahara said,

What's interesting to me now is how Windows 9 will look like...

I predict it will look exactly like Windows 8 but with a few of tweaks professional and desktop users are screaming for already in the W8 previews.

If previous trends are any indicator (e.g. the up button), it may take until Windows X to undo all the damage of rushing Metro to the desktop market.

Intrinsica said,

He said, "i have a feeling that window 7 will be turing in too a other window XP wish means evere one will be on window 7 more then window 8
after they stop doing updates for window 7 i may move too a mac or android or ipad."

Translated, he thinks that the direction that Windows 8 is taking will mean that Windows 7 will become the new Windows XP insofar as Windows 7 will continue to have a majority market share even when Windows 8 gets released. He follows on with his point by then stating that - if Microsoft don't change some of their decisions with Windows 8 - once the updates stop coming for Windows 7 he will be moving to a different operating system in protest.

+1

With there being less versions, it will be interesting to see. There are some features that I wish the Pro version could have though still...

If its less, then thats a good thing. Hopefully it will mean more people will be able to purchase and use the OS. And less amount of people complaining they cannot afford it and what not.

Hum said,
'Cuz few people will want it ...

It needs to be lower. I say it must anything under $50 for quick adoption. Microsoft needs to get W8 running on as much computers as possible to drive the app market purchases and let the ecosystem in motion. Anything around $100 and above is instant DOA!

sanke1 said,

It needs to be lower. I say it must anything under $50 for quick adoption. Microsoft needs to get W8 running on as much computers as possible to drive the app market purchases and let the ecosystem in motion. Anything around $100 and above is instant DOA!

Microsoft already missed a bit opertunity to allow Windows XP users upgrade to Win7 starter for free. I know Windows 7 Starter edition was super lame but it was Microsoft's way of leavering XP out of the hands of those who resisted the upgrade, mainly due to cost.

I don't think we'll be seeing a sub $50 Windows 8 option, even for their most basic version, even if that ment it came without touchscreen ability, ie most desktop machines.