Microsoft Clarifies Windows 8 UK Pricing

👤by Tim Harmer Comments 📅30.08.2012 15:45:07

When Windows 8 upgrade pricing - the cost to move from a previous version of Windows to the newest - was announced as being $39.99 there were gasps of delight from those still faithful to the Redmond-based company. However gasps quickly turned to groans in the UK as regional pricing was revealed: 39.99. Indeed pricing reflected an even more steep bottom line: 49.99; a prime excuse for the printed press to roll out a favoured headline - 'Rip Off Britain'.

Or was it? Citing a 'miscommunication', Microsoft have clarified that UK pricing for a digital upgrade would be a mere 24.99, and that those who purchased a Windows 7 PC later than 2nd June 2012 would be able to get it for a miserly 14.99. Certainly a major revision, and worth putting in context.

The current UK pricing for Windows 7's Digital Upgrade is an astonishing 82.99, and so even a 39.99 price for Win 8 Upgrade would be a major reduction. Furthermore, the pricing for a Windows 8 Upgrade represents the pre-order cost for a physical copy, which obviously incurs significantly more cost than the digital version and hence the higher price tag. A revised 24.99 inc 20% VAT represents a price even lower than the US pre-tax price at current exchange rates ($39.62 vs $39.99), at a stroke neatly popping the bubble media bubble. This pricing will also not sunset, unlike the aggressive time-limited offers around previous releases.

So, why are Microsoft so eager to price Windows 8 aggressively? Simple really, they're taking a leaf out of Apple's highly successful playbook. The Windows 8 App Store - previously known as Metro Store but now sadly without a catchy name following a recent court case - will cream up-to 30% from every application sale through the Store. Microsoft actively want people to move to Windows 8 not so much because they want the face price of the OS, but rather because they want to hit critical mass with the Store.

It's worth noting that this is likely the major reservation games publishers such as Valve and Activision-Blizzard have over Windows 8. If Microsoft start to lock down the OS to feed everyone through the Store, it leaves little room for Steam and DLC purchases that didn't give Redmond a cut.

Windows 8 is due for release on the 26th October. Will you be upgrading to Windows 8, or holding off a little while to see how things shake out?

Source: Fudzilla

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