Analysis: Microsoft could cut Windows 7 list price to $100

08.06.2009

Those calculations, however, present problems with the pricing of Windows 7's other edition, dubbed Professional, the replacement for Vista Business in the line-up. Microsoft has been adamant that will be a superset of the one immediately lower on the price/feature ladder. Such a strategy would hint at prices set accordingly; in other words, Business would be priced higher than Home Premium but lower than Ultimate. Because Microsoft declined to cut the U.S. prices of Vista Business or Vista Business Upgrade, however, relying on the 2008 decreases means that, by Computerworld's calculations, Windows 7 Professional would remain at $300 and Windows 7 Professional Upgrade at $200. That's unlikely, given that those numbers would price Professional higher than Ultimate.

Another tack that Microsoft could take would be to simply cut prices for all editions by the same percentage, thereby lowering prices while still keeping its tier structure intact. In a scenario where the company cuts prices 10% from the current Vista list, for example, Windows 7 Home Premium Upgrade would list at $117, while Professional Upgrade and Ultimate Upgrade would be priced at $180 and $198, respectively.

A 20% across-the-board cut would put Windows 7 Home Premium Upgrade at $104, with Professional Upgrade and Ultimate Upgrade at $160 and $176, respectively.

Last week, said that the retail chain will pre-sell Windows 7 Home Premium Upgrade for $50 and Windows 7 Professional Upgrade for $100 for a limited time starting June 26. The memo didn't specify whether those prices were set by Best Buy or would be part of a general promotion by Microsoft, nor did ir specify the price of those editions once the 16-day special sale expires.

Best Buy's sale prices may provide a clue about the list prices. The chain's $100 sales price for Windows 7 Professional Upgrade is exactly 50% of the $200 price tag of Vista Business Upgrade. If Best Buy is offering Windows 7 Home Premium Upgrade at the same 50% reduction, that means the full list price of the edition will be $100.