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Microsoft is looking to counter low-cost Chromebooks running Chrome OS

According to Bloomberg, Microsoft will slash Windows 8.1 licensing fees by 70 percent for makers of low-cost (priced less than $250) computers and tablets. This means that licenses will now be priced at $15 instead of $50.
Microsoft has experienced slowing growth in the operating system market with Windows 8. As we reported earlier this month, sales of Windows 8 thus far have failed to live up to its predecessor, Windows 7.
In addition, customer reaction to Windows 8 has been tepid, forcing Microsoft to make changes to how users interact with the operating system via the already released Windows 8.1 and the upcoming Windows 8.1 Update 1.

On top of its own internal issues that it has to grapple with, Microsoft is also fighting another battle on the low-end of the PC market against Google and computers running Chrome OS. In fact, low-cost Chromebooks running Chrome OS were able to secure 21 percent of the U.S. notebook market during 2013.
While a license fee reduction for Windows 8.1 will cover the PC and notebook market, the next step may be to make even more drastic price cuts with Windows RT. The Verge reported in December that Microsoft could make Windows RT free to OEMs in an effort to combat iOS- and Android-based tablets.

Source: Bloomberg

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It won't make a difference
By mike66 on 2/22/2014 10:39:13 AM , Rating: 0
By cutting the OEM license fee manufacturers will make more profit from selling less units, why would manufacturers pass on a discount to consumers who are just not willing to by windows hate(8).
Next MS will try to discount the retail version which is just to expensive for what it is and what it has to compete against. Windows Pro Pack ??? what a joke, more cost for what should be standard!
MS listen to your customers.
Release a service pack 2 for windows 7, integrate it and call it windows 9, have a completely different OS for windows phones and tablets and include your metro-sexual interface. Maybe after many years of using the new phone and tablet OS try reintegrating the metro-sexual interface into the desktop OS but make it a customer option.

RE: It won't make a difference
By Reclaimer77 on 2/22/14, Rating: 0
RE: It won't make a difference
By w8gaming on 2/22/2014 11:27:41 AM , Rating: 2
The manufacturers in their greed, also will realize why they should be selling Chromebook and Android tablets so cheap and start charging more. That's the real motivation for MS to lower the licensing fee. To promote greed.

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