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Story: Windows 7 unlikely to cause leap in PC sales
Price defines whether Win7 is classed as a 'service pack' for Vista.
Windows 7 could well stll turn out to be a 'Service Pack' for Vista. How its defined is by the price charged for a Vista->Windows 7 Upgrade - a minimal price - it effect becomes a service pack.
In the past they have offered a discount 'window' / mail in rebate.
on average -I'd put a guess on $119 with a short term $70/80 rebate. so £89 become £29/39 in the UK.
It will be interesting if they class XP upgrades different to Vista.
The recent announcement of a $29 upgrade for Leopard->Snow Leopard will mean a few hurried boardroom meetings. I'm pretty sure reinactments of the Apple Graphic showing the $129 full price being stripped of the $100 are being done on whiteboards at MS as we speak, in respect to Vista. ''Me too' is MS's new philosophy.
Compare this to o2's recent iphone 3G S (S - for scandal) pricing scandal here in the UK, and MS can see the sort of backlash that could occur regarding Windows 7. You can have a very good product but try to pretend its so good that people will pay anything for it - you'll feel the heat. That heat for MS might turn nasty given Vista's patchy history.
You get the feeling MS want to draw a line in the sand with Vista- Windows 7 is that line. Windows 7 doesn't have that 'arrogant' boastful feel to it, just a solid no-nonsense upgrade - consolidating the past (Vista) as 'best it can'.
The cheap snow leopard upgrade offer by Apple is clever (and contractictory UK o2's iphone approach)- their install base is far smaller than MS, they make money on the hardware. Apple may have chosen a minimal profit on this move to enable the bigger picture which is to undermine MS.
This sort of cheap upgrade option would cost MS far more if it takes a similar move (much larger install base) in the process undermining their strategy somewhat - but I think it will happen but will be a 'one off'. Windows 7 is required across the board to leverage new revenue streams apart from the OS. It allows them to consolidate support costs, yet still charge premium customers the same.
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