Microsoft cuts Vista prices to boost sales

29 Feb 2008

Microsoft has decided to change its price-point strategy by reducing the sale price of its Vista operating system saying that stand-alone packages, at 10pc, currently do not account for much of overall sales, something the Redmond-based firm wants to change.

Since its release in 2007, most Vista sales have been made by virtue of the software being bundled in with new PCs and although sales have passed the 100 million mark, many businesses are reluctant to make the change.

Irish research firm iReach found only 9pc of companies had planned to install Vista in 2007, while Gartner research director, Annette Jump, previously stated that less than 5pc of new PCs in medium to large businesses keep the operating system, most opting to downgrade to XP or earlier.

While the recommended retail price will be down to the retailer, the US version will now be sold at US$319, instead of the original US$399.

“Price changes will most notably impact upgrade retail versions of the new editions we introduced in 2007 – Windows Vista Home Premium and Ultimate editions,” said Brad Brooks, corporate vice-president for Windows consumer product marketing at Microsoft.

Brooks said pricing will differ from country to country because it will reflect the different needs in developing and emerging markets.

Microsoft says the price cut was decided upon following extensive research and promotional offers to which consumers responded well.

By Marie Boran