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Vista Ultimate and Premium Get Price Cuts

Microsoft has announced price cuts for the two versions of Windows Vista that come with Media Center and other features. Windows Vista Home Premium, the version that adds Aero, Media Center, Tablet support, Meeting Space, SideShow, scheduled backups, DVD Maker, three more games, and high def Movie Maker, drops from $159 for an upgrade to $129, just $30 above the price of the under-powered Home Basic.

Windows Vista Ultimate, the version that has everything in Premium plus Complete PC Backup, Fax & Scan, Remote Desktop, and BitLocker Drive Encryption, drops even further, going from $299 down to $219. The price cuts are only for the versions in retail stores, which is fine, since that’s the version you’d be buying anyways.

Of course, on Amazon you can get Home Premium for just $95, and Vista Ultimate for just $195.

In spite of the sales of millions of copies of Vista, Microsoft knows the premium versions aren’t selling as well as they could. It’s notoriously hard to convince consumers to pay even a little extra, and pricing the version with Media Center sixty bucks higher than Home Basic creates a significant barrier to entry. Lowering the price of XP Media Center back in 2004 resulted in an increase from 1 million copies a year to several tens of millions, and with $30 in extra revenue per copy, every increase of ten million copies is worth $300 million.

March 2nd, 2008 Posted by Nathan Weinberg | Vista, Windows | 3 comments



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3 Comments »

  1. About time…

    Comment by Michael | March 2, 2008

  2. Anyone who has bought a PC in the last year will already have Vista. Any PC more than about three years old is unlikely to be able to run Vista. Or if it is, it’s much better value to buy a new PC with Vista included. I can’t see why anyone would buy a Vista upgrade now even at the reduced prices.

    Comment by Julian Gall | March 2, 2008

  3. @Julian:

    1.-those with 3 year old high end (at their time) who does can run Vista without a problem.

    2.-those who bought a computer over a year ago with XP and want to move on to Vista.

    3.-Those who built their own machines.

    there are easily other 7 reasons. but this 3 would be the most obvious ones.

    Comment by Avatar | March 2, 2008

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