Microsoft could take a hit whether netbook prices move up or down, analysts say. If netbook OEMs load on features such as DVD drives and higher-resolution screens and start running pricier versions of (Microsoft has said it will run Windows 7 Ultimate on netbooks), the price points will carry over into the realm of regular laptops - a troubled market that Microsoft wants to protect from further bleeding.

Gartner in January that revenue from the sale of PCs dropped between 15 and 20 percent during the fourth quarter of 2008 as sales of cheaper netbooks forced OEMs to reduce laptop prices.

One recent development that could also cut into the market for higher-priced laptops and leave Microsoft vulnerable is the , analysts say.

Inexpensive and lightweight netbooks provide enough computing power for positions such as account managers and traveling salespeople. Microsoft will still benefit from corporate netbooks, but not the way it would with the more profitable sales of traditional laptops.

Netbook OEMs HP, Acer and Asus have either launched or are preparing to launch enterprise model netbooks with increased battery life and higher resolution screens.