The general consensus is that Windows Vista was somewhat of a disappointment (although it seems to be working pretty well for me, after installing the service packs).  Millions of disgruntled Vista users, however, felt that they were sold a faulty, unfinished product, and many of them “downgraded” back to XP (or even Windows 98).

. . . but there was light at the end of the tunnel, wasn’t there? . . . Windows 7 was on it’s way and it was going to “fix” Vista.  

Apparently, Windows 7 is built on Vista, but with improvements and bug fixes.  Sounds good.

There was speculation and rumors that Microsoft would give away Windows 7 to all registered Vista users, to placate them . . . and they should! 

Not only was Vista something of an embarrassment for Microsoft; but they have Linux and, especially, Google threatening to take away a chunk of Microsoft’s share of the operating system market.  (I predict that we will see a true Google operating system before long.  Everex has already produced a computer (available at WalMart for $199) which runs a modified version of Ubuntu, called gOS.  Everex claims the computer was “created as a conceptual Google PC with a conceptual Google OS” and it has Google’s permission to use its trademarks. The g from gOS and gPC means “green”, as the computer uses an energy-efficient processor, but many people will associate it with Google).

Despite the grumbling of computer manufacturers and users, and despite the sad state of the economy, Microsoft continues to charge higher and higher prices for it’s operating system.  The price of Vista caused some manufacturers (including Dell) to offer new PCs loaded with Linux or Windows XP, instead.

Now, it has been disclosed that Microsoft intends to charge even more for Windows 7 than it did for Vista!  Dell thinks that the price is too high, and that price will be a barrier affecting sales to consumers, and prohibiting some businesses, schools, etc. from upgrading.

“If there’s one thing that may influence adoption, make things slower or cause customers to pause, it’s that generally the ASPs (average selling price) of the operating systems are higher than they were for Vista and XP,” Darrel Ward, director of product management for Dell’s business client product group, said in a phone interview (with CNet.com)

Ward continued: “In tough economic times, I think it’s naive to believe that you can increase your prices on average and then still see a stronger swell than if you held prices flat or even lowered them. I can tell you that the licensing tiers at retail are more expensive than they were for Vista.”

In the business market, Windows 7 Professional is expected to be more expensive than Windows Vista Business, the version that Professional is replacing, he said.

Some schools and smaller businesses may not be early adopters due to price. “Schools and government agencies may not be able to afford (the additional cost). Some of the smaller businesses may not be able to enjoy the software as soon as they’d like,” Ward said.

I’m sure the business people at Microsoft are smarter than I am, and I’m sure they know what they’re doing . . . but with the rise in popularity of free alternative operating systems (see http://www.ethelthefrog.com/?p=726)  and “cloud computing“, I think that a high price for Windows 7 might be “the straw that broke Glen Campbell’s back” (as Balki from Perfect Strangers would say).  I anticipate that, rather than rushing out and buying Windows 7, a lot of people will be sticking with the operating system that they currently use, switching to Linux, or purchasing “netbooks” that presently come loaded with XP.

I just look at the sliding price of Microsoft stock, and the direction that technology seems to be heading, and I have to scratch my head and wonder if charging more for Windows 7 is really a smart business move for Microsoft.

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• If Windows 7 Pricing Is Higher, Will Anyone Buy It? (lockergnome.com)
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