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Analyst Says Windows 7 is Not Affordable Enough

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While for some of us, the pricing for Windows 7 is easy on the wallet thanks to the OEM solution, there are others that aren’t too happy due to the retail prices.

According to a recent study by The NPD Group’s VP of industry analysis Stephen Baker, the mostly free upgrade program for PCs bought on or after June 26, 2009 is extremely commendable, but the retail pricing is a bad idea, especially in today’s economy. “Besides the fact that $119 is a price point that fits nowhere in these economic times, it is still way too much for the software,” stated Baker. “… It is in Microsoft’s best interests to erase all vestiges of Vista from consumers’ homes, and by making the upgrade expensive … Microsoft is creating a large disincentive for consumers to move to a far superior platform with a better user experience.”

So what do you think? Is the pricing for Windows 7 too rough on the pocketbook, or is the pricing just fine the way it is?

 

Image Credit: Microsoft

COMMENTS
avatarI tested the Beta and RC.

I tested the Beta and RC.  its nice, different,  I even get a little better frame rates over vista.  My sound card isn't working right (but thats drivers)  But I don't see any benifit over Vista to justify $119.00.  Maybe if I had gotten in at the $50 price deal.   Plus I have 7 computers in the house.  If I did one I'd want to do all and thats not happening for this price.  This is really only a service pack.  They should give it out for free and pay us for our time to reinstall what is fixing their mistake.

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avatarDoesn't matter what the price is...

Played with the last Win7 RC for a while in both real and virtual environments, and I quickly figured out that paying for an OS that seems to be little more than a glorified Service Pack 3 for Vista doesn't make sense.

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avatarApple wins

in my house. My final game machine (last windows box) died last month. After seeing the prices which i consider to be insulting given the debacle of Vista, we chose to let Windows go for our household and just remain where we are,  on one mac pro tower, 2 macbook pros, and one imac for the kids. 

 I have a 360 for games anyhow.  

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avatarApple wins

doubled

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avatarFamily pack pricing is where it's at!

The best way to save money on Windows 7 is to purchase the Windows 7 family pack. It's a great deal and many people should take advantage of it. And no...the 3 users do not really have to reside in the same residence. How is Microsoft going to check? Oh wait...they can..."IP", but then that would be illegal and nefarious. And we all know what an upstanding company Microsoft is. 

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avatarI think the full pricing is

I think the full pricing is a bit high, but I got in on the pre-order price so I have nothing to complain about.I don't think the price point is at whine-ass levels though.

Analysts say a lot of things. I think they just like to see their names in print.

 

.: vires et honos :.

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avatarWar of the Worlds 7

It's yet another remake of the classic movie that was Win 95, except this time the Tripods are replaced by the machine- god Microsoft who, after draining the green life blood from billions of the human population around the globe, is not content to own a monopoly with a monetary worth greater than that of all of Cuba.

Of course the pricing is not fair. How can it be? Was not the groundwork already done? How much overhead can there be for changing a few snippets of code from  Vista, along with thousands of hours of free testing, suggestions, and debugging by the unpaid masses who tested and used both  betas and Rc's? You're gonna pay me back by throwing me a dated, one dog only bone that's only available until July 11? I probably will buy it, but it's only a disposable version (Oem) so really what good is it when my motherboard gets fried a month after I activate? (I live next to high- power lines and lightening-prone trees)

Why does a 1 TB HD cost less than a Dvd full of Microsoft-produced binary code?

I'm paying less money for better hardware and more mb's than 14 years ago. Heck, my first ol' 8088 machine with it's whopping 8-bit proc, 12 mhz bus, 640k ram, 5.5 floppy, 10 mb. HD cost over 1k. Look what you can get for 1/4 of that cost now.

So why do I have to pay consistently rising prices for intellectual-based data that is not bound to the constraints of a physical manufacturing facility, raw material pricing and availability, machine maintenance, etc. when all it takes to program code is a frigging laptop and a car battery! 

I spent years suffering through patch after patch, server problems, service packs 1 - ~, driver updates, knowledge base articles, anxiety, and BSoD's. Since the general consensus is that Vista turned out to be a lemon, shouldn't Vista purchasers from way back be afforded the same FREE upgrade option future Vista owners will have? 

Capitolism works only if you can control the greed.

Good thing the open source community is thriving, and Microsoft's consistent greed- based pricing system will insure that. And Don't give me no crap about piracy.  The real crime is the corporate model  of using high dollar lawyers to find ways to weasel out of anti-trust lawsuits.

The Brits wouldn't stand for it and neither should we.

 

 

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avatarStuck it to Canadians...

I followed a link to preorder Windows 7 from an earlier MPC article, and was glad to see the reduced upgrade price through Newegg (even after the currency change).  So I tried Newegg.ca and...surprise...no pre-order promo there.  Here's the reply from Newegg.

Dear Customer,

Thank you for contacting Newegg.

I
would be glad to assist you with this. I looked into this and
unfortunately with the Windows 7 upgrade we are not offering it to our
Canadian customers. Also you will not be able to order it on the US
site if you do not have a US based payment method and billing
information.

If you have any further questions or concerns, please visit our FAQs page. If you still need assistance, please feel free to email me directly and I will be happy to assist you. 

 

Can't help but feel a little left out up here...

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avatarUpgrading can be done regardless what version you have

NO matter what version of Windows you have, Windows Upgrade will still work, even without the XP or Vista disc.

Just install Win 7 WITHOUT THE KEY first, then, while in Windows, do the upgrade WITH THE KEY. (Yeah, a little bit of a pain, but it beats paying full price for the FULL version.)

 

I'm pretty sure that this will install like this, since Vista did the same thing with THAT upgrade.

 Even if you DO NOT have a version of Windows, the upgrade version will still work. (Unless they changed that.) But ANY version of Windows XP or Vista will qualify you for the upgrade--though you really don't need them.

Hope that helped.

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avatarI for one will wait for the

I for one will wait for the OEM version, 'cos I don't care for an upgrade disc.  The price seems OK, but here's m yrant-

Most homes these days have more than 1 computer.  Mine has 5.  It's silly to me to fork out that much for EACH PC.  MS should include 3 licenses for the price, just to have the option for cudtomers with one PC.

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avatarYou do realise that the OEM

You do realise that the OEM versions are tied to a specific system? Once you've activated it on the machine, if it senses any major hardware changes (such as attempting to install it onto a different machine), it will not work.

 

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avatarNot True!

I installed a Dell XP HOME OEM OS on a new system because my Dell computer died. I installed a new motherboard, new hard drive and new memory. Yes, the OS was not activated automatically because it did not sense the "original" parts, but I entered the XP key on the Dell case and the OS works just fine. 

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avatarYes- I realize that. 

Yes- I realize that.  Sorry, it was two different subjects, with no transition.

I'll buy the OEM  cos I don't want to pay the price for the fancy package. 

I would, however, be willing to pay more for the retail version if it came with several licenses.  If I had one computer, paying full retail would be fine. But since I have (the inconvenience of having) a house full of computers, I can't afford putting a new OS on each one.

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avatarWish prices were a little better

I agree that the current reduction in price is pretty darn good, but I do wish they would have reduced the price of the full retail versions as well.  I don't want to have to put in my XP disc every time I do a fresh install or have to go through some round about way of getting it done.  They'll slash win7 pro upgrade from $199 to $99, but Win7 pro full retail stays at $299, that's way too high for me, but I want the XP mode functionality that Home Premium doesn't have.  I'd be all over the full retail version if it was 50% off right now.

 

btw, in response to one of the posts below, yes, each retail/upgrade version you get comes with both 32 and 64 bit versions.  (see the details here).

*Edit: link fixed.

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avatarI have a question and cannot

I have a question and cannot find the answer ANYWHERE.

 I understand that I have to be running VISTA at the time of installing 7 for it to work but...

I will be running 32-bit Vista. Can the upgrade method work if I get a 64-bit version of home premium? Also,

does the upgrade from newegg, tigerdirect etc. include BOTH 32-bit AND 64-bit versions of 7? Or is it one version? 

I seriously need clarification and fast because these copies are running out :/

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avataranswer

For your first question, which was kind of a two parter because your first statement is false: You do not have to currently be running windows vista. You can do an upgrade from vista if its currently installed, or you can do a clean install (win 7 will ask you for your vista or windows xp cd/key.) So yes, you can use the win 7 upgrade to go from xp or vista 32 bit to win 7 64 bit.

 To answer your second question: Every windows 7 disc (full version or upgrade) excluding the basic edition (which isn't being offered right now anyway and only comes in 32 bit) will have both 64 bit and 32 bit versions on the disk. So if you have a 32 bit system now and upgrade to 64 bit later you will not have to buy a new copy of windows 7.

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avatarOnce again thanks to all for

Once again thanks to all for the help

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avatarnot so fast there...

 Not so fast there, Mesiah. The days of inserting a CD during install ended with XP.  To installWin 7 you must have a valid copy of XP or Vista actually running on the PC you intend to install the OS on.  If no valid copy is detected, Win 7 upgrade WILL NOT install.  This has been clearly detailed on TechNet.

Check it out here:

http://social.technet.microsoft.com/Forums/en/w7itproinstall/thread/b47bc608-bfe8-4f55-8b00-62c26a6112ca

__________________________________________

-- "What am I, MacGyver? Fix it with what?"--

 

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avatarwhew!

I am glad that you mentioned this. Because after installing the Windows 7 beta and RC1 I still could not install the OS like I could for XP. I kept reading from alot of people who say "yes, it's so easy to install Windows 7. Just put in the DVD and boot the computer like XP. Lol.....as you have mentioned Windows 7 installation needs to be run from within windows. 

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avatarSatisfied

I am satisfied with microsofts pricing with windows 7. Looking back at their past pricing structure it is very much in line. Look at it this way, if vista never existed everyone would be just fine with these prices. Yes, vista had its problems when it came out, but most of those have been fixed by now. MS is offering a 2 week discount on win 7 as an apology to those who suffered through vista and can't stand to use it any longer. Those are the people who are going to run out and pre order. The rest of the people, the ones that think vista works just fine, or hate vista only because their friends or the people at work tell them they should, will keep on using it and this wont effect them at all.

 So, Microsoft is charging what windows 7 is worth when it comes out, but for a limited time they are apologizing for thier last release, be happy with it. It's more than what most companies would do. $50 for an OS upgrade is dirt cheap when you concider people pay more than that for a single game or a couple blu ray discs these days.

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avatarDecent

The prices are decent but I think the pre-order deal should be the real deal, not just pre-order. I was lucky enough to get Vista Ultimate x64 OEM for $80 from a friend because he had an extra....but it's ridicolous that 7 Ultimate has no special deals going on at all...and I believe I can't even "upgrade" to it. The prices on OEM for Windows 7 better be good.

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avatarI can't help wondering if the Patches will be the same deal...

The full list to patch one of my WinXP sp1 PC's (from a fresh re-install) is 4-5 Gigabytes.

I think I'd be really ticked off, if I paid $120 for 7, then it took them 12-18 months to roll out enough patches to make it work as it should have at launch--the way they seem to have done with Vista.

I haven't really tried Vista, or looked much at 7...

Since I'm not buying now, I guess we'll see if I EVER see a compelling reason to buy a MS OS without a new PC, again.

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avatar$119 ...

is fine for a full retail price. Upgrade pricing should be below $100.

But $250 for a new system? Idiotic. If you are building a new system you are going to go OEM anyway if you have any sense, so why not just make the retail price fall in line so you can buy it in a local store.

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avatarPricing Could Be Better

I think they should make the $49 Windows 7 Home Premium the price for Vista Home Premium users permanent. XP users should pay the $119 upgrade price to Home Premium from either XP Home or XP Pro. But I think they need to lower the price for Windows 7 Ultimate.  As seen with Vista Ultimate you really get jack for the price. They promised all these special freebies for Vista Ultimate users and they never really materialized. Also they should offer a special upgrade price for 7 Ultimate like they're doing for Home and Pro.

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avatarI think

I think if you have a leagle copy of Vista you should get a comparable copy of Win 7 upgrade for half price. Vista had some "major" issues and still has some issues. Personally I will just wait till i need a new PC could be Win 8 by then.

 

Internet box Linux,Dual boot/Vista,AMD Athlon+ x2 5600,3 Gig DDR2 ram,500 Gig HDD,ATI HD 4650 1 gig Video.

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avatarHello McFly???

 Hello McFly???  Everybody gets Win 7 for half price right now.  But hurry, it's already sold out in Japan.

 __________________________________________

-- "What am I, MacGyver? Fix it with what?"--

 

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avatarCan't buy right now

Try as you might right now there is no where in the world you can buy a legal copy. You can preorder for two weeks and wait till oct. if you want. What i said is if you have vista you should beable to get a comeparable copy of win 7 for half price. I don't buy in to this preorder stuff for a limeted time only crap.When Win 7 comes out if you own vista period you should get a comparable verision of Win 7 upgrade for half price. Can you hear me now?

 

Internet box Linux,Dual boot/Vista,AMD Athlon+ x2 5600,3 Gig DDR2 ram,500 Gig HDD,ATI HD 4650 1 gig Video.

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avatarI think Mr. Baker has no

I think Mr. Baker has no idea what he's talking about. If you consider Microsoft's pricing history in regards to Windows, the current prices are about right.

Here's the breakdown for the home consumer prices, which are what he seems to be focused on and worried about.

Windows 95
Full Version Retail price: $209
Upgrade Retail Price: $109

Windows 98
Full Version Retail price: $209
Upgrade Retail Price: $109

Windows ME
Full Version Retail price: $209
Upgrade Retail Price: $109

Windows XP Home
Full Version Retail price: $199
Upgrade Retail Price: $99

Windows Vista Home Basic
Full Version Retail price: $199
Upgrade Retail Price: $99

Windows Vista Home Premium
Full Version Retail Price: $259
Upgrade Retail Price: $159

Windows 7 Home Premium
Full Version Retail price: $199
Upgrade Retail Price: $119

So in essence, I can buy a full version of Windows 7 Home Premium for less than I paid for Windows 95 when it came out. I don't know about anyone else, but that sounds like a damn good deal to me.

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avatarPrices and Acceptance

Thanks for this information, it is interesting to see how the prices have gone down.  I think the point the analyst was making is that the OSes are priced too high if the goal is to get users off of their old OSes (which is true). Apparently the analyst thinks that is what the goal should be.  However, MS's goal looks to be maximizing OS revenue instead.

And really, why should MS be worried about getting people off of old OSes just for that sake?  They can discontinue support (and the associated costs) for the old OSes whenever they are willing to take the publicity hit.The analyst is barking up the wrong tree.

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avatarA good deal? Not particularly.

Microsoft have always overpriced their OS when it comes to competition.

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avatarApples to glass

 You all have got to stop comparing Apples to Glass.  Apple and Microsoft have two completely different marketing approaches.  Appleproduces and sells their own hardware, which is how they make their money.  Microsoft does not produce PCs, they just sell software.  A PC will always be cheaper than a Mac with comparable components.  The fact that you can build a Hackintosh for half the price only proves how bloated their hardware prices are.

Please stop using the fact that Linux is free and OS X is only $29 as a viable comparison, because it's just not that simple.  Then again, headaches are free and heartburn is cheap, if you really want them.

___________________________________________

-- "What am I, MacGyver? Fix it with what?"--

 

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avatarbut, but...

 Ok. Lets just get one thing straight here.  Apple DOESN'T make their own hardware!

Why do I keep hearing this crap?  They buy parts from Intel, nvidia and ati and other major companies just like PC OEMs do.  What are you smoking?

What they DO do, is charge too much for the entire package, and also rip you off for support and upgrades.  Blame it on them being greedy, or Apple not getting the high volume discounts that dell or hp may get, I don't care, but stop saying Apple makes and sells their own hardware, cause that's just retarded.

### I'm an idiot, and I approve this message ###

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avatarWindows

Like Windows has never caused headaches and hartburn.

Internet box Linux,Dual boot/Vista,AMD Athlon+ x2 5600,3 Gig DDR2 ram,500 Gig HDD,ATI HD 4650 1 gig Video.

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avatarRight

I think BinaryMonkey is right. Of course the prices are about right! Even during these dark days.

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avatarThere's no pleasing the masses

BinaryMonkey makes a good point.  Look at it historically, this looks about right, but no matter how Microsoft prices Windows, there will always be whiners.  Especially those whose job it is to whine, such as Mr. Baker.

I think MS has been absolutely brilliant in their release of Windows 7.  By making the beta a free download they had millions of testers they would not have had otherwise and we all did it for free!  In releasing the RC, they got us completely hooked.  Then they release the real product for a fire-sale price.  Brilliant!

___________________________________________

-- "What am I, MacGyver? Fix it with what?"--

 

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avatarI said it before and I'll

I said it before and I'll say it again. I'd be willing to pay 50$ a year for Windows (like I do for xbox live) and expect to have all the functions for that prize. ( If I had paid 50$ a year for XP it'd be up to 500$ now - think about it MS).

However, I would expect to have all the upgrades, patches and new versions for that prize including windows 8 and so on.

 

Honestly though, 119$ for something I might very well use for 5 years is nice. I'd take 3 licenses for 200$ though. or 5, make it 5.

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avatarJust bought W7 HP

Just bought W7 HP

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avatarwhat do I think ? I think we

what do I think ? I think we got these great devices in our homes capable of so much and we have these lacking OSs that still have screen savers. Time to think outside the Window.

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avatarVista SP2

It should be FREE to all Vista users, it's basically just fixing broken shit and a minor visual refresh. I think of Win 7 as a service pack.

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avatarNOT THE SAME

Have you even tested it? Vista and Win 7 are alike but there complety different OSes both. And plus i beleive that SP2 is already out maybe you should just get that instead of win 7 and stop complianing.I'll even give u the link.

http://www.microsoft.com/downloads/details.aspx?FamilyID=a4dd31d5-f907-4406-9012-a5c3199ea2b3&displaylang=en 

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avatarIMO, the special pre-order

IMO, the special pre-order price currently in effect through July 11 should be the regular price for the upgrade versions, & current Vista OEM pricing should be the pricing for full retail versions. 

Windows 7 Home Premium is plenty for the vast majority of home users, & $49 is a decent price, even for an upgrade version.  That asside, with such a short pre-order period for the reduced price, MANY who could benefit from it will never even know about it, or find out about it in time to take advantage of it.

Personally, I think Microsoft should extend the reduced price pre-order period through to the end of September.

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avatarI agree

$50 was a good deal. Hell, I preorded two upgrades because it was $50. If it had been released only at the $120 level I would have kept my Vista machines exactly as they are. I didn't see anything in W7 that made me desperate to upgrade. Speed? Can't say I've noticed any major slow downs on an i7 machine with SLI and 6GB DDR3. Not enough to pay $220 for a redesigned task bar and different colors.

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avatarThis is the same scenario as

This is the same scenario as when XP came out.  Windows ME had just come out and sucked hard-core.  Everyone hated it just as much, if not more than Vista.  XP came out and dominated.

 For the home crowd the pricing won't affect sales.  We're talking about people buying stand-alone copies of an operating system.  Not businesses or people getting OEM's with their PC.  The target audience who will buy the OS off the shelf will buy it regardless of the economy, and regardless of a $20 price difference.

 

My 2¢

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avatarDoesn't affect me. I never went to Vista

I never went to Vista and bought home Premuim for the sale price plus $30 off opening an Amazon.com credit card account. I only paid $24.97. I couldn't be happier.

I am Recession Proof

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avatarUltimate

I think it is still over-priced.

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avatarI Think its right on the money

I think that price point is perfectly acceptable cheers Microsoft Windows 7's gunna be awesome and i'm not being a fanboy cause I agree windows Vista had a lot of stumbles and I do believe its time to move on just like we did with Windows ME.

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avatarWindows 7 pricing

I too think Microsoft is shooting itself in the foot with this retail pricing for 7 as it does nothing to make up for the poor experience Vista provided to general users and they paid dearly for it. I was very pleased MS gave the 50% discount for a very limited time but suspect they are doing this primarily as a PR move so they can then yell how well the OS is selling prior to release. I only purchased it because I refuse to pay retail or OEM price as I already wasted my money on Vista.

 

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avatarI agree that the 99 dollar

I agree that the 99 dollar moniker makes it that much more appealing, especially when most of us paid out the wazoo for a bunked OS known as vista when it was released. I for one, went to newegg and pre-ordered the home premium for 49 the day it came out so this pricing wont effect me.

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avatarThe Magic Number

In this economic climate, the $100 mark seems to almost be a "magic" number for many retail customers.  A $100 difference between TV's is a make-or-break (no matter the actual differences between the models...), the idea of a $100 BluRay player is enough to consider buying one, etc.  So pricing Windows 7 Home Premium at $99, just under that mark, would seem to be much wiser than pricing it at $119 right now.

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avatarIf home premium would drop

If home premium would drop form $119 to $99, they'd sell more, faster. Even though the HP retail pricing is lower then Vista, I still think they can go lower.

 How low can you go?

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