Windows 7 Starter editions limitations under scrutiny
Microsoft appears to be pushing the starter edition of Windows 7 as its main option for netbook manufacturers. That’s put the spotlight on the edition’s limit of three simultaneous applications.
That Microsoft was producing a budget edition of its new operating system with such a limit is no surprise: many tech sites, including BLORGE, reported that back in February. But an article in today’s Wall Street Journal, which mentions that point, has led mainstream attention to the Starter Edition.
Perhaps the most surprising aspect of the Starter Edition set-up is that it’s clearly driven by cost rather than the technological limitations of low-spec netbooks. The WSJ reminds readers that Microsoft usually gets just $15 for each copy of XP on a new netbook, compared with at least $50 for each pre-installed copy of Vista on a desktop or laptop.
The wholesale price of Windows 7 is likely also be low on netbooks as manufacturers need to keep costs down and Windows makes up a bigger proportion of those costs in a netbook. To make up for this, Microsoft is actually planning to put more than just the Starter Edition on netbooks which advertise that system.
Users will then be given the option of paying extra to upgrade to additional features such as running unlimited numbers of applications at once (well, limited only by the computer’s specs rather than an arbitrary limit).
There’s a major risk that could backfire. Unless the marketing is extremely clear, users could get a shock if they run a Starter edition of the machine not knowing about the three-applications limit. Even where users are aware of the set-up, there’s likely to be hostility to the idea of paying extra for what seems like an integral function of an operating system: multitasking.
And once users figure out that their netbooks have always been technically capable of running four or more applications at once, it’s going to be awfully hard for Microsoft to avoid accusations of cynical price-gouging.

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April 20th, 2009
You might almost think that Microsoft is a closet fan of Linux.
I know that they’re masters of shooting themselves in the foot but come on!
April 21st, 2009
“The WSJ reminds readers that Microsoft usually gets just $15 for each copy of XP on a new netbook, compared with at least $50 for each pre-installed copy of Vista on a desktop or laptop.”
What I would call “the Linux effect”. One would think that Microsoft are not too happy about having to cut the price of their operating system by 70% in a fast-growing segment of the market.
“There’s a major risk that could backfire.”
When you think of Microsoft and ploys, the word “backfire” certainly springs to mind most readily.
“Unless the marketing is extremely clear, users could get a shock if they run a Starter edition of the machine not knowing about the three-applications limit.”
A reprise of the “Vista Capable” fiasco would be funny to watch.
“Even where users are aware of the set-up, there’s likely to be hostility to the idea of paying extra for what seems like an integral function of an operating system: multitasking.”
Welcome to the Borg’s world. Please be sure to leave your self-interest at the door.
“And once users figure out that their netbooks have always been technically capable of running four or more applications at once, it’s going to be awfully hard for Microsoft to avoid accusations of cynical price-gouging.”
Is there anyone who believes that historical profit margins of 70-80% have been sustained by any practice besides price gouging?
If Windows 7 is nothing more than Vista’s crippled cousin, it seems doubtful that it will turn the tide for the beleaguered Microsoft.
April 25th, 2009
Article on arid.net (http://digg.com/d1pTAK) that talked about windows 7 starter edition and had suggestions on a better way to implement the starter edition for netbooks.