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Some restrictions may apply

Just how desperate is Microsoft Corp. (MSFT) to get customers to relinquish their death grip on its nearly decade-and-a-half old operating system, Windows XP?  It's now offering customers $100 USD to get rid of their old Windows XP PC -- although some restrictions do apply.
 
The caveat is that you have to trade in your computer at a Microsoft Store, and you have to buy a new Windows 8.1 machine that costs $599 USD or more (limiting the maximum discount is roughly 16 percent).
 
The good news is that most of the laptops and desktops at Microsoft stores are relatively new, so it's unlikely that Amazon.com, Inc. (AMZN), Newegg, and other online retailers will be able to offer a better deal, on average.
 
Microsoft has previously offered a $50 USD gift card for those who traded in XP machines.  By contrast the new deal is simply a direct discount, redeemable instantly off your purchase.

Windows 8.1 discount

The initiative won't likely do Microsoft any great favors financially, given that it already was rumored to have cut Windows 8.1 licensing fees on low cost machines from $50 USD to $15 USD (which would indicate an $85 USD loss on the current deal, if accurate).  But the deal isn't quite that bad for Microsoft as it creates goodwill with its OEM allies who are grumbling about the impact of poor Windows 8.x sales on their bottom line.  Plus Windows 8 comes with the Windows Store, and Microsoft gets a cut of app revenue
 
Windows 8.1 has been met with tepid casual consumer and enthusiast response, outside of tablet devices, which seem to perform quite well with the new Metro user interface.  Microsoft has promised for a second time to repair Windows 8 for non-touch devices with the Windows 8.1 Update 1 and future follow-ups later this year.
 
Windows XP computers are still found in vast quantities in many parts of the world.  While they're now in the minority in the U.S., Microsoft's figures suggest that when the April termination of support for the platform rolls around 65 percent of users in China -- the world's most populous nation -- will still be using Windows XP.  Unfortunately there's not enough $100 USD discounts to solve that dilemma.

Source: Microsoft Store



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RE: They will need to pry it...
By HoosierEngineer5 on 3/21/2014 5:32:22 PM , Rating: 0
Microsoft could fix most of this by granting Windows 7 licenses to all the legacy XP users (especially if they created a version that didn't require a clean installation).


RE: They will need to pry it...
By NicodemusMM on 3/21/2014 10:16:27 PM , Rating: 4
MS is a business, not a charity. What you're suggesting is the equivalent to suggesting that a vehicle manufacturer should issue free new cars to people that need airbags and modern metallurgical advancements, but are happy with two-point restraints and collapsible steering wheels. Derp.
(and it seems you want this as an upgrade to the old vehicle, not a replacement. Über-derp)

Please start a business and apply this policy. Once you're bankrupt you'll have a better understanding of both finances and reality.


RE: They will need to pry it...
By name99 on 3/22/2014 1:25:03 PM , Rating: 2
Yes, Microsoft is a business.
Which means that, if they want that business to CONTINUE, they need to look carefully at WTF they are doing.

Right now, they are trying to sell an OS that MANY people are unwilling to pay $0 for. That's not a great place to be in. The BEST (of a bunch of bad) moves going forward may well be to give out Home Win8 for free to limit the defection of their user base.

They can then try to offer Win9 for a price --- and this time make it something people are WILLING to pay for. Or they can define the bare (consumer) OS as free forever from now on and charge for the stuff that makes it useful to businesses. Or they can decide that they are in the services business and charge subscriptions for Office 365 etc.

But their current trajectory is the stupidest of all possible paths. They're building up a pool of people who are going to hate them forever for how the XP thing was handled; they're bungling the chance to keep those people as Windows users rather than (eventually, when they replace the PC) Chrome or Android users.
They're continuing to try to avoid reality, to party like it's 1995 and the business models of that age are still viable when everyone else has moved on.

Being a business means making decisions based on hard REALITY and the future; not based on some sort of weird moral principles like "People who haven't upgraded since XP don't deserve our shiny new OS".

(And if there is such a large pool of people who have not bought ANYTHING you've tried to sell them in over ten years, doesn't that show that, just maybe, there is something wrong with your business model? Maybe it's your pricing, maybe it's the features you're adding, maybe it's the hassle of your licensing and upgrade process? But there is obviously something VERY wrong.)


By HoosierEngineer5 on 3/22/2014 6:10:32 PM , Rating: 2
Maybe when Gates gets back in. I've always had respect for him.


RE: They will need to pry it...
By ppi on 3/22/2014 6:15:16 PM , Rating: 2
Yes, M$ is a business. Therefore, while I am not happy with their decision, I understand it. Ultimately, for Win8 haters there's still Win7 available.

M$ has to spend ton of $$$ to maintain support for an OS, which security standards are outdated, and for which it will not incur new revenue. Last time I checked, XP does not require regular maintenance fee.

Windows territory are $500+ machines, which is tall order for most tablets and probably all Chromebooks. You are not going to pay that amount of money for glorified browser. Therefore, if you intend to replace your Windows machine with Chromebook/Android, you are not in their market anway, so zero revenue for M$ again.

Therefore, why they should want to support you?


RE: They will need to pry it...
By fenderkb76 on 3/25/2014 9:30:11 AM , Rating: 2
Yes, what a sloppy mess with how they've handled XP...giving users two years of warnings about the demise of the OS and even extending support on multiple occasions to appease the clientele. How dare they! I think I'm going to call the manufacturer of my car and demand continued free maintenance after 5 years because they owe it to me! I shouldn't have to pay one penny because I bought that car and I'm entitled for it to be maintained at their expense for the rest of my life.

I'm no Microsoft sympathizer, but I think all the people whining about the end of XP can stuff it. The OS has been around in the mainstream for way longer than it needed to be. Don't be lazy and move on. I use Windows 7 at work and I recently upgraded to 8.1 at home just to try it out. I like them both. I don't see a place for 8.1 in the workplace yet as we'd have to retrain all employees who already are mostly computer illiterate. However, I think 8.1 is great at home and we actually have a few users who remote in to the office from a Windows 8 machine.


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