The Computer Buzz

June 11th, 2009

Nome and Paul Van Middlesworth - owners - The Computer Factory
 

The Latest on Microsoft

Last week Microsoft announced October 22nd as the release date for Windows 7, the operating system successor to Vista, but left some important questions unanswered. They didn't publish a pricing schedule for the upgrades or versions of the Windows 7 nor have they revealed when they will permit retailers to start issuing free Windows 7 upgrade coupons for customers who purchase PCs with Vista.

It is customary for Microsoft to allow retailers to offer free upgrades when a new operating system is about to be released. The obvious reason for this practice is to help retail distribution channels unload inventories of PCs pre-loaded with the old operating system. The problem facing Microsoft is that once the public knows that free upgrades are on the horizon, they stop buying PCs altogether and wait for the free upgrade coupons. That's where we stand today. No one should even consider purchasing a Vista based PC until the free upgrade coupons are available. When will that be?

An intercepted internal memorandum from Best Buy gives us a huge clue. The memo states that effective June 26, Best Buy will offer its Technology Guarantee program, which means if you buy a PC with Windows Vista Home Premium, Business or Ultimate after that date, you'll get a coupon good for a free upgrade to Windows 7 when it's released in October.

The more interesting detail read that Best Buy will offer a Windows 7 pre-sale for 16 days, from June 26 through July 11, at incredible discount prices. Windows 7 Home Premium upgrade package will run for just $49.99 and Windows 7 Professional upgrade package for $99.99.

In conclusion, the Best Buy memo made the dubious suggestion that although other retailers will be making the same offers, Best Buy will have a distinct advantage because of the availability of "Geek Squad" (Best Buy's over-priced, under-whelming in house service department).

Buy a Vista PC after June 26th and you will get a free Windows 7 package in October. You would only suffer with Vista for about four months. One of the problems Microsoft must consider is the fact that there are several law firms poised to attack Microsoft with class action lawsuits upon the release of Windows 7.

The suits will seek reparations for Vista victims. It will maintain that Windows 7 is little more than a clean-up of Vista. Vista victims should be entitled not only to a free upgrade to Windows 7 but also a professional installation of the upgrade. This argument has some merit and would certainly resonate with a populist jury. Eventually Microsoft will be forced to make Windows 7 upgrades available at very low cost to all Vista users in order to discourage the class action.

Even though Windows 7 allows users to run Windows XP emulation (run programs as if they are running in XP), most XP users will likely wait and see through at least the first half of 2010.