Report: Microsoft to Cut Windows 8.1 License Fees by 70% for “Budget” PC Makers
February 22, 2014 8:57 AM
Microsoft is looking to counter low-cost Chromebooks running Chrome OS
, 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
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.
reported in December
that Microsoft could make Windows RT free to OEMs in an effort to combat iOS- and Android-based tablets.
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