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Microsoft announces Vista retail price cuts

by Scott Bicheno on 29 February 2008, 10:49

Tags: Microsoft (NASDAQ:MSFT)

Quick Link: HEXUS.net/qal2k

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People like things to cost less

Microsoft’s assessment of stand-alone retail sales of Vista is that it “represents an area of opportunity for additional growth…” In other words: not so great. So in order to boost sales, it’s going for the old ‘make it cheaper’ tactic.

Brad Brooks, corporate VP for Windows consumer product marketing, interviewed on Microsoft’s website, said: “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.”

He added: “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.” Hmmm.

Microsoft seemed to think it was necessary to explain why it thought making boxed Vista cheaper would lead to more sales. “Over the past year, we conducted promotions in several different markets combining various marketing tactics with lower price points on different stand-alone versions of Windows Vista,” said Brooks.

“While the promotions varied region to region, one constant emerged – an increase in demand among consumers that went beyond tech enthusiasts and build-it-yourself types. The success of these promotions has inspired us to make some broader changes to our pricing structures, to reach a broader range of consumers worldwide.”

The timing is apparently designed to prevent retail partners updating their displays more than once; they will be refreshing their inventories when retail SP1 comes out anyway, you see.

So what about Amazon?



HEXUS Forums :: 33 Comments

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wow, I wonder how much they paid a consultancy firm to tell them that making something cheaper means the demand will increase?

Someone doing GCSE economics, or even business studies (FTW?!) could have told them that!

…Good news though
Yup, good news :)
People never miss a chance to bitch about Microsoft do they? Seriously, Vista's been out for over a year and it's past the holiday season. A price cut at this point says nothing about Vista's sales figures but more about the fact that Microsoft, like every other company in existance, cuts the price on products after the early adopter take up.
Linux based OS are the much better choice for obvious reasons … do some research if you're interested in the facts.
If you then still have to ask for why … then I'd say it's about clarifying who is the master and who is the slave in regards to USER & COMPUTER …

Only the mainstream is blinded by the whistle & eyecandy of microsoft OS.
Well MS are damned either way - i've just come to accept that i'm going to read how anything that MS does is a bad thing. MS is a company of contrasts - some stuff it puts out is really bloody good, some ‘meh’ and some bloody awful. However, it's human nature to focus on the latter and it's ‘cool’ to hate MS too.

The same's true with Apple - but the boxes are much more shiny and the PR much better done..

Annnnnnyway.. price cuts are a good thing and will save people money so i can't see it as being anything but positive.