How much will Windows 7E really cost?

iulie 05 01:40 2009

During the past week, Windows 7E pricing got a lot of buzz as sites got hold of Microsoft’s pricing details. From misinformed editors to misleading titles, the information out there seems to contradict each other. I’ve managed to gather some updated info from a number of updated sources including confirmation from a Microsoft Spokesperson, which I will outline here.

Rumor Smash: Windows 7E will cost as much as the US edition
This is false. At no time did Microsoft ever make such a statement. They only said that Windows 7E full edition will cost as much as Windows 7E upgrade edition.

Rumor Smash: Windows 7E to cost double the American price
We reported this after seeing ComputerWorld’s posting of the prices. However, a Microsoft Spokesperson denied such claims

Microsoft to charge Europeans double for Windows 7″ — was inaccurate because the EU prices include the VAT (Value Added Tax) consumption tax. The spokesperson claimed that the VAT accounted for 17-18% of the price of Windows 7

In comparison, the average combined sales tax burden in the United States was 8.6% in 2008.

What exactly are the prices for Windows 7E?

Windows 7 Home Premium – €119.99/£79.99 ($168.69/$132.22) – Up $48.70/$12.23
Windows 7 Professional – €284.99/£189.99 ($400.63/$314.05) – Up $200.64/$114.06
Windows 7 Ultimate – €299.99/£229.99 ($421.69/$380.17) – Up $201.70/$160.18

And just in case you were wondering, these were the original full edition prices (in Euros only):

Windows 7 Home Premium – €199.99
Windows 7 Professional – €309.99
Windows 7 Ultimate – €319.99

What does the date December 31 have anything to do with this?
I managed to reach a Microsoft spokesperson for comment and this is what they told me. The prices listed above are only good up until December 31, 2009. Microsoft continues to work out details in the EU. No additional details were given other than those comments.

Does that mean prices will increase in the future?
That could be a possibility. Bill Veghte said in a statement that Microsoft may offer Windows 7 Upgrade in the future. If that is the case, they will revert to differential pricing of the full and upgrade pricings.

What is this upgrade edition / full edition pricing thing you’re talking about

The way Microsoft has explained its pricing may be confusing so let me lay it out all for you. Microsoft will only be selling the full edition of Windows 7E in Europe for now in efforts to please antitrust regulators in Europe. Since there will be no upgrade edition, they are pricing all full editions of Windows 7E at the same price as the upgrade editions of Windows 7E.

But you said there was no upgrade edition…
Microsoft is giving you the originally planned prices for Windows 7E Upgrade edition instead.

Why is there no upgrade edition of Windows 7E?
Due to concerns raised by EU antitrust regulators, Microsoft have decided to remove the bundling of IE8 with Windows 7E. Any sort of upgrade installation would mean that IE8 code would be carried over to Windows 7. Microsoft does not want this.

Does that mean Windows 7E will have no browser?
Not necessiarily. This was the comment given by a Microsoft Spokesperson,

As we outlined previously, Microsoft will be working with retailers and other partners to provide copies of Internet Explorer for retail customers who choose IE.

Although it is very possible for computer retailers to install browsers of their own preference onto systems before selling them, we are not sure how Microsoft plans to do the same for standalone copies of Windows 7E.