Microsoft cut Windows licensing fee by 70% to counter Google

[TechAbstract]

Microsoft Said to Cut Windows Price 70% to Counter Rivals - Bloomberg

 

[micallan_17]

great news and hope it helps in the ecosystem

 

[Elitis]

Assuming this report turns out to be true, this isn't a good thing. Any product eligible for this discount (i.e any device that retails for less than $250) isn't required to pass logo certification, or have a touch-screen.

 

[thatotherdude24]

I'd love to see a big price cut for consumers too for Windows 8.1. $99 and $199 are way too pricey.

 

[a5cent]

I certainly don't mind the price cut. I do mind that MS is allowing OEMs to install the OS on any hunk of junk they choose. This was part of what caused the Vista debacle, as many OEMs decided to install Vista on hardware that simply wasn't capable enough to run it. OEMs will always cut corners in their pursuit for profits. The masses will always gravitate to the cheapest offerings. This is how MS earned their poor reputation to begin with...

Dropping prices doesn't change strategies. I think that is fine. Dropping certification and allowing the Windows ecosystem to revert back to the wild west of PC computing definitely is a strategy shift. I think that is a poor decision.

It seems like MS doesn't really know how to run their business. They seem to not know whether they want to emulate Apple or Google (who is actually emulating the MS of the 90's), flip flopping back and forth between the two whenever something blows up in their face. It's very reactionary, and it isn't helping them...

 

[Jas00555]

I certainly don't mind the price cut. I do mind that MS is allowing OEMs to install the OS on any hunk of junk they choose. This was part of what caused the Vista debacle, as many OEMs decided to install Vista on hardware that simply wasn't capable enough to run it. OEMs will always cut corners in their pursuit for profits. The masses will always gravitate to the cheapest offerings. This is how MS earned their poor reputation to begin with...

Dropping prices doesn't change strategies. I think that is fine. Dropping certification and allowing the Windows ecosystem to revert back to the wild west of PC computing definitely is a strategy shift. I think that is a poor decision.

It seems like MS doesn't really know how to run their business. They seem to not know whether they want to emulate Apple or Google (who is actually emulating the MS of the 90's), flip flopping back and forth between the two whenever something blows up in their face. It's very reactionary, and it isn't helping them...

it may not make them look pretty and it may impact their bottom line, but Microsoft is so big that they can afford a few bad quarters if they need to. This price cut won't be like this forever and I'm guessing with Windows 9 will go away.

This is just a temporary move by Microsoft. Remember Linux notebooks? They were cheap inexpensive products and were gaining a foothold on the market until Microsoft did EXACTLY the same thing that they're doing now. Windows is going to be on dirt cheap hardware (which W8 is more optimized for cheaper hardware than Vista) and people will just pretty much stop buying Chromebooks which will force OEMs to stop supporting it, even if it is a free OS.

Microsoft knows exactly what they're doing and aren't afraid to temporarily become a Google on their trip to becoming Apple.

 

[a5cent]

They were cheap inexpensive products and were gaining a foothold on the market until Microsoft did EXACTLY the same thing that they're doing now. Windows is going to be on dirt cheap hardware (which W8 is more optimized for cheaper hardware than Vista) and people will just pretty much stop buying Chromebooks which will force OEMs to stop supporting it, even if it is a free OS.

You are forgetting one huge difference. Back then, all the software people wanted to use ran on Windows. That is why the price war favoured MS. Very different story today.

I also disagree that MS knows exactly what they are doing. They are constantly reacting and have failed to seize the initiative on any mobile front. Instead of sticking to their guns, they are constantly revising strategies and technical goals. They are currently fighting all their mobile battles on Google's and Apple's terms, not on their own...

Microsoft aren't afraid to temporarily become a Google on their trip to becoming Apple.

And that is their fundamental mistake. They shouldn't be trying to temporarily become Google to eventually become Apple. Being a better Google than Google won't work for MS. Neither will being a better Apple than Apple. MS needs to stake out their own ground and make the competition chase them. What you've described is exactly what will remove them from the consumer market.

 

[Jas00555]

You are forgetting one huge difference. Back then, all the software people wanted to use ran on Windows. That is why the price war favoured MS. Very different story today.

I also disagree that MS knows exactly what they are doing. They are constantly reacting and have failed to seize the initiative on any mobile front. Instead of sticking to their guns, they are constantly revising strategies and technical goals. They are currently fighting all their mobile battles on Google's and Apple's terms, not on their own...




And that is their fundamental mistake. They shouldn't be trying to temporarily become Google to eventually become Apple. Being a better Google than Google won't work for MS. Neither will being a better Apple than Apple. MS needs to stake out their own ground and make the competition chase them. What you've described is exactly what will remove them from the consumer market.

and what software is there on the Chromebook that would entice consumers? Chromebooks are basically browsers that can do some offline stuff. According to Google fans, its great for average users because apparently average users spend 100% of their time in a browser (something that I definitely disagree with). What difference is that from a Linux netbook? All that has is a browser with not much else.

You say "all of the programs were on Windows" as if they're taking on the iPad, which is not what this move is about. A Chromebook is a modern day Linux notebook that still doesn't have all of the programs that everyone needs.

 

[Michael Alan Goff]

I disagree that this is only about Chromebooks. I see them wanting to help make sub-250$ tablets that can fight against the iPad Mini as well.

 

[rodan01]

I disagree that this is only about Chromebooks. I see them wanting to help make sub-250$ tablets that can fight against the iPad Mini as well.

They need more people using store apps. Just fill the world with Windows 8 devices in all possible price points and form factors.

Android is also replacing laptops. I've seen people using their tablets in keyboard cases all the time just as netbooks with touch screen, and that's stupid, Windows 8 is a much better OS for the job, but the price of any Windows 8 device was just too high for the low end market.

The requirements for Windows 8 are now 1gb of ram and 16 gb of storage. How can you build a machine with lower specs than that in 2014? Android OEMs with uncertified phones and tablets haven't ruined Android. Times changes, the massive consumer market use other rules, inexpensive products with lower quality are acceptable and people understand that there is a risk in buying those products. Someone buying a $70 Android tablet understands that the product is not comparable to a $400 Samsung tablet.

I like the moves that Microsoft is doing.

 

[tgp]

According to Google fans, its great for average users because apparently average users spend 100% of their time in a browser (something that I definitely disagree with).

I work some in PC sales and repair, and this is actually true. Probably 95% of our consumer customers use their PCs for no more than a Chromebook will do. Of course, a few will do more and business users as well, but the average user does email, Facebook, and browsing. That's pretty much it!

 

[a5cent]

I work some in PC sales and repair, and this is actually true. Probably 95% of our consumer customers use their PCs for no more than a Chromebook will do. Of course, a few will do more and business users as well, but the average user does email, Facebook, and browsing. That's pretty much it!

I agree, but even if users do more, the Chromebook is still a viable option. I still know a lot of people that desperately want MS Office on their laptops, but that is just because they haven't yet grasped that you can go to Office Online or Google Docs and get a subset of that functionality for free. The online versions are rather simplistic, but the truth is that the average Office user hasn't advanced farther than what MS Office was capable of doing fifteen years ago. For the occasional letter or quick & dirty spread sheet, the online versions work fine.

Then we have browser games, which are becoming ever more popular. Netflix is provided through the browser, as is YouTube, and most of the other services people use. My Girlfriend works in the finance industry. She is around office computers all day, but when she is at home, she could easily get by with only a browser.

What difference is that from a Linux netbook? All that has is a browser with not much else. You say "all of the programs were on Windows" as if they're taking on the iPad, which is not what this move is about.

Again, my point is not that Chromebooks can easily entice consumers away from Windows. My point is that Windows doesn't have the same ability to retain users as it once did. Today, many people can easily imagine a home computing environment entirely without MS or Windows. This is definitely different! Not because Chromebooks are so much better. They aren't. It's just that Chromebooks are reaching that level where they are "good enough", and most consumers don't care about anything that goes beyond "good enough".

Yes, Chromebooks are just modern Linux netbooks. The difference that you fail to see is that five years ago, an internet browser wasn't half as capable as an internet browser is today. Today, for a lot of people, an internet browser can even replace MS office. The internet browser is slowly becoming what the OS used to be... it's the foundation on which everything else runs. Google is the main force behind this transformation, and it will continue.