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Microsoft sets limits on low-cost Windows PCs

updated 01:55 pm EDT, Mon May 12, 2008

MS limits low-cost Win PCs

Artificial limitations are being imposed on some forthcoming low-cost Windows PCs, according to documents Microsoft has sent to PC builders. Although the company plans to offer a sharp discount to ultra-low cost PC (ULPC) builders on the price of Windows XP Home, in order to foster the adoption of Windows over Linux on devices like the Eee PC, vendors are being asked to limit screen size to 10.2 inches, and hard drives to 80GB. Furthermore, no qualifying ULPCs with XP will be allowed to have a touchscreen, more than 1GB of RAM, or anything better than a single-core processor running at 1GHz, except for certain chips like Intel's Atom N270.

The reason for the restrictions is said to be Windows Vista, as Microsoft does not want ULPCs reducing demand for more conventional computers equipped with its newest OS. "It allows PC makers to offer a low-cost alternative, and it prevents eroding of pricing and margins in the mainstream OS market," comments analyst Roger Kay of EndPoint Technologies Associates.

Microsoft's new marketing scheme is launching in June, with prices based on the relative wealth of a computer's market. For systems sold in First World countries, XP Home will cost $32; in poor countries such as China and India, by contrast, the OS will cost only $26. The deeper discount comes into play with the additional Market Development Agreement, which can drop the price another $10.

 
Previous Comments

Starting to smell like...

05/12, 02:11pm reply

...monopolistic behavior to me.

lockhartt

Fresh-Faced Recruit

Joined: Apr 2000

+2

limiting windows

05/12, 02:14pm reply

more than it already is???

climacs

Fresh-Faced Recruit

Joined: Sep 2001

+2

DVD

05/12, 02:53pm reply

Is DVD playback also prohibited? All i want is a low cost portable with dvd playback. The touchscreen ban is a bit strange, i wonder MS is planning to bring a small tablet on the market.

Peter Bonte

Fresh-Faced Recruit

Joined: Aug 2001

+1

monopolistic?

05/12, 02:54pm reply

All they're trying to do is keep people from selling the cheaper Windows for ULPC on machines that would be considered not ULPC.

But being Mac users, we're never restricted by arbitrary limits, right?

testudo

Fresh-Faced Recruit

Joined: Aug 2001

0

re: monopolistic

05/12, 03:09pm reply

The mac is closed, and windows is open for all compatible hardware. yes or no? What is up with the touchscreen limitation, why can't this be a feature for the ULPC?

Peter Bonte

Fresh-Faced Recruit

Joined: Aug 2001

+1

Electronista vs. MacNN

05/12, 03:10pm reply

This was cross-posted on the front page of MacNN, parent site of Electronista. However, it simply isn't Mac-related news. Please stop this. Why have multiple sites if everything is cross-posted?

njfuzzy

Fresh-Faced Recruit

Joined: Apr 2001

0

testudo almost got it...

05/12, 03:37pm reply

"All they are trying to do is keep people from...."

Another MS motto.

Doofuses.

robttwo

Fresh-Faced Recruit

Joined: Nov 2005

0

26

05/12, 03:47pm reply

26 dollars for an ancient OS seems like a pretty nice profit margin for MS

rytc

Mac Enthusiast

Joined: Jan 2001

+2

F*** MICROSOFT!

05/13, 05:59pm reply

They just create limits to ensure early death... PERFECT I SAY!! :)

Guest

Fresh-Faced Recruit

Joined: Nov 1999

+2

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