Microsoft cuts Vista prices just a year after its consumer launch

Windows Vista has received a sour reputation in the year it has been on the market. Some users of complained about driver incompatibility and performance issues -- among other things -- compared to the venerable Windows XP operating system the came before it. Microsoft addressed a number of these issues with Service Pack 1, but many consumers and businesses are still sticking with Windows XP.

Microsoft is looking to give customers more incentive to upgrade to Windows Vista by cutting the price on some versions of the operating system. Although upgrade versions account for less than 10% of Vista licenses, two upgrade editions will see price cuts.

The range-topping Windows Vista Ultimate (full) will fall from $399 to $319. Windows Vista Ultimate (upgrade) drops to $219 from $259. Finally, Windows Vista Home Premium (upgrade) had its price cut from $159 to $129.

"We anticipate these changed will provide greater opportunities ... to sell more stand-alone copies of Windows," said Microsoft corporate VP Brad Brooks.

Microsoft says that it sold over 100 million Vista licenses since its consumer launch in late January 2007. Hopefully for Microsoft, this latest price cut will help improve Vista adoption.

However, there may be one obstacle in the way that will still stop consumers from making the switch: Windows XP SP3.

"You can bet that Sony built a long-term business plan about being successful in Japan and that business plan is crumbling." -- Peter Moore, 24 hours before his Microsoft resignation

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