Report: Microsoft To Cut Windows Price By 70% For OEMs, Windows 8.1 License To Cost Only $15

Windows 8.1 power guide

Bloomberg today reported that Microsoft is cutting the price of Windows 8.1 OS license to OEMs by 70% for low-cost PCs and tablets. This new discount program is one of the main effort Microsoft is taking to rival the adoption of Google’s Chromebooks and Android devices.

Windows 8.1 license generally costs $50 for OEMs, but Microsoft pays them marketing incentives every year which would bring the effective Windows 8.1 license cost around $30-$40. According to this new report, OEMs will be charged $15 to license Windows 8.1 and preinstall it on devices that retail for less than $250. This new pricing scheme will apply only for the products that meet the price limit, with no restrictions on the size or type of device.

Microsoft, which named Satya Nadella as CEO earlier this month, is seeking to speed up development and introduction of new devices. It won’t require products that use the cheaper licensing to complete logo certification, a process that verifies hardware compatibility, one of the people said. Devices aren’t required to be touch-screen compatible, they said.

Few years ago, when Linux based netbooks started to rise in the market against Windows, Microsoft offered Windows XP license for cheap price and captured the market completely. Can Microsoft repeat the same success again?

Source: Bloomberg

  • -7-

    I expected them to make it free for consumers to upgrade from an older version.. and adopt a system where they charge an annual fee from OEMs regardless of the volume of PCs shipped.

  • donzebe

    Yes, kill the Evil; chrome android.

  • LexicoRed

    Discounting Windows so OEM can continue to sale low price crap hardware which in turn people will associate with a “Microsoft” experence leading to more consumer moving away from Windows.

    Meet the new Boss
    Same as the old Boss

    • Truthhz

      A low end Windows tablet or laptop is still a much better experience than the crap Android devices flooding the market. The OEMs decide what to sell not MS. That’s why MS should expand the Surface line of products.

      • LexicoRed

        Not case when MSFT puts a <= $250 requirement on the devices that qualify, it has decided for the OEMs what will be sold; low grade hardware.

        Moreover, speaking of Surface, this could turn out to be the final nail in the coffin so kiss it good-by. Even fewer people are going to consider a Surface product if they feel they can get close to the same thing for $500 less; being the average Joe or Jane doesn't know about internal quality differences.

        • Truthhz

          This move is just to appease OEMs that whine they can’t compete on price because of licensing cost. So MS will tell them they’ll cut price *IF* they actually sell a low cost device to compete against Chrome and Android.

          There are ZERO Windows tablets on display at the Costco, Targets, and Walmarts in my area. Intel and Microsoft have to get used to the new reality that $200 tablets from Samsung and Google are the competition. Surface has to win on design, quality and innovation. OEMs that want to target the low end is their business decision.

          • LexicoRed

            Sorry but your not making sense… Your saying that low end is where the market is but Surface needs to be a high end product. Only one of these things will succeed but neither will contribute any significant color to bottom line dollars if they are successful.

            Take some time an actually think through your thoughts if you want to contribute.

          • Truthhz

            You really don’t get it, and you’ve added arrogance to your ignorance to top it off.
            Consumers EXPECT consumption devices that do light productivity like emails for around $200. Samsung, Google and Amazon all know that. This isn’t the *entire* market, but it’s a very important part.
            If you give up this market segment, you’ve lost a generation of users to another ECOSYSTEM. They will be locked into an ecosystem and possibly move away from Windows completely. Apple got users to move from the ipod to the iphone to the ipad very quickly.

            Surface has many purposes besides “color” to the bottom line. MS would be foolish to simply rely on OEMs for hardware innovation and design. People will pay more for quality and innovation. Surface should be viewed as a long term strategy.

          • LexicoRed

            The irascibility of your attitude coupled with irrationality of your state illustrate the obviousness of your objective; to troll.

            It would be unfruitful to further a dialogue with one with such agenda of producing headwinds of animus.

          • Truthhz

            Maybe YOU should think through your thoughts, because you obviously can’t defend your myopic viewpoint.

          • MSphan

            Looking through the thread, it appears you do not understand the word myopic.

          • Truthhz

            This isn’t 2007 and the birth of netbooks. The Dell Venue Pro 8 tablet often sells for under $250 and it’s a nice tablet. You can stick your head in the sand and tell yourself that Windows shouldn’t be on $250 devices, or you can check into reality.
            It’s a disaster that rows of Android tablets are on display at major retailers while Windows tablets are a no show. Talk about myopic.

          • MSphan

            You have correctly reiterated my position that you fail to comprehend the correct use of “myopic”.

          • Truthhz

            myopic – “lacking imagination, foresight, or intellectual insight.” That describes MSphan and LexicoRed exactly. I’m done wasting my time with mental midgets.

          • MSphan

            But the fact is that LexicoRed did have insight but you disagreed with it. Does not mean the poster holds a myopic view but in fact it was a quite penetrative perspective showing a causation of cheap hardware and negative attitude towards an OS that existed on the product.

    • jimski27

      Agreed. Sorry, but very few people have a long term (meaning like 10 months) positive experience with a $250 Windows laptop. Maybe some special class of tablets to compete with the Android bargains. But please, no more Pentium and E1 laptops on the front page of Sunday circulars.

  • NGM123

    Good news, but I think to late. Happy to be proven wrong tho.