Helm added that Microsoft is trying to discourage the production of inexpensive computers where Windows becomes the most expensive component because it can't make as much money on Windows on these devices, and they could drive down the price of Windows.

Microsoft's current Windows client OS, Windows Vista, had too large a hardware footprint and was too expensive for netbooks, giving Linux an opening in that market when it emerged late last year. However, Microsoft's eight-year-old Windows XP OS is still the dominant system for netbooks, and the release of Windows 7 in October will feature a Starter Edition that is especially geared toward that market as well.