Print 39 comment(s) - last by HomerTNachoChe.. on Feb 26 at 9:59 AM

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

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

RE: That's great but...
By Reclaimer77 on 2/22/2014 10:41:03 AM , Rating: 0
quote:'s just going to make a Windows laptop even *more* obviously the better choice over a Chromebook.

It does?

Windows 8 is still the same piece of garbage it was before this announcement. Hell it launched at $30 and people STILL didn't want to buy it or use it. How does this change anything?

Let's be honest, we all know the "Windows tax" has no real impact on the PC market. The problem IS Windows itself, not the license fees.

You don't seem to understand Chromebooks or why people buy them. Which unfortunately is fairly common among "technical" minded people. You really think Chromebook buyers are comparing the technical specs against a Windows notebook for comparison? Uhhh yeah, WOOOSH, over your head buddy.

I seem to remember similar comparisons of tablets vs PC years back. Tablets are still around, yes? Just checking.

RE: That's great but...
By atechfan on 2/22/2014 11:08:56 AM , Rating: 2
Windows 8, approx. 200 million sold. ChromeOS, approx 2 million sold. Yeah, MS is really worried there.

This is all about Anroid 7 and 8 inch devices. That is where Google is a threat to MS. They want to make small Atom based Windows tablets price competetive.

RE: That's great but...
By Reclaimer77 on 2/22/2014 5:10:26 PM , Rating: 1
Nowhere in my post did I even hint that I believe ChromeOS was a threat to Microsoft...

In fact the only ones behaving as if that was true, are Microsoft! They're running the anti-ChromeOS adds.

I know you guys believe I'm some wacko Google CEO in disguise, but it would be nice if you actually READ my posts before accusing me of stuff.

RE: That's great but...
By Alexvrb on 2/23/2014 8:44:33 PM , Rating: 2
I know you're not a whacko Google CEO, because you don't kiss up to your buddy in the White House. At least not publicly. That's a dead giveaway that you're NOT a Google executive. Other than that though...


RE: That's great but...
By w8gaming on 2/22/2014 11:14:03 AM , Rating: 2
Problem is this. Comparison in the past:

cheap PC: fast CPU, big HDD, more applications, big RAM
tablet: slow CPU, small storage, less app, small RAM


cheap PC: bad display, heavy, short battery life
tablet: nice display, light, long battery life, very portable

Nowadays, comparison looks like this:

cheap PC: fast CPU, big HDD, more app, bad display, heavy, short battery life, WiFi
cheap W8 tablet: ok CPU, flash storage, more app, nice display, light, long battery life, very portable, WiFi
chromebook: ok CPU, flash storage, less app, nice display, light, long battery life, WiFi
tablet: ok CPU, flash storage, less app, nice display, light, long battery life, very portable, LTE

There are more offering from MS now that competes better feature wise to cater for the mobile minded users. Lowering license fee makes it even more competitive. MS is really going to fight hard for its market share now. It is good that MS no longer thinks they can blindly copy Apple with its premium pricing strategy and expects they can come up on top.

RE: That's great but...
By YearOfTheDingo on 2/22/2014 12:24:32 PM , Rating: 2
Exactly. The problem is that Windows 8 running on a machine without touch-screen feel seriously broken. People are not going to buy something that doesn't seem to work even if it's cheap.

RE: That's great but...
By ppi on 2/22/2014 5:37:35 PM , Rating: 2
People do not buy Windows 8 notebooks, because the notebooks purchased in 2008-2012 era are still perfectly usable devices, and they do not need to be replaced. The only substantial and noticeable upgrade current notebook could have compared to 5 years old one is SSD and Haswell battery life.

Very few non-techie people upgrade OS anyway. And Win8 upgrade is not compelling without touchscreen (except for the fast wake-up).

Basically, anyone who needed and wanted to have notebook has one, and current growth market are the cheap devices. $50 for just OS is just too much for them, so I am glad M$ realized that mistake. More competition is always better for me.

RE: That's great but...
By kmmatney on 2/22/2014 9:23:39 PM , Rating: 2
Well - I bought 2 copies of Windows 8, simply because it was cheaper than buying a single copy of Windows 7. I wish I could get rid of Metro entirely (it still pops up in annoying ways all the time) but it was worth it being so much cheaper.

"It seems as though my state-funded math degree has failed me. Let the lashings commence." -- DailyTech Editor-in-Chief Kristopher Kubicki

Most Popular ArticlesAre you ready for this ? HyperDrive Aircraft
September 24, 2016, 9:29 AM
Leaked – Samsung S8 is a Dream and a Dream 2
September 25, 2016, 8:00 AM
Yahoo Hacked - Change Your Passwords and Security Info ASAP!
September 23, 2016, 5:45 AM
A is for Apples
September 23, 2016, 5:32 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki