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Microsoft Holds the Line on Windows 7 Pricing, Launches Limited Time Promotion

Jun. 25, 2009 Paul Thurrott | Paul Thurrott's Supersite for Windows

This is from this morning's WinInfo, but I want to make sure everyone caught it.

Microsoft this morning announced its retail pricing plans for Windows 7. First, the good news: Contrary to rumors, the company is not raising prices. The bad news? It's not significantly lowering prices either. In fact, most versions of Windows 7 will simply cost exactly the same as their Windows Vista predecessors.

In the US, three versions of Windows 7 will be widely available at retail, Windows 7 Home Premium, Professional, and Ultimate. Pricing for the Upgrade versions of these products breaks down as follows:

Home Premium (Upgrade) - $119.99
Professional (Upgrade) - $199.99
Ultimate (Upgrade) - $219.99

Full product pricing includes:

Home Premium (Full) - $199.99
Professional (Full) - $299.99
Ultimate (Full) - $319.99

In each case, Windows 7 Professional and Ultimate is priced identically to its Windows 7-based predecessor. Windows 7 Home Premium (Upgrade) is $10, or 8 percent, cheaper than Windows Vista Home Premium (Upgrade). And Windows 7 Home Premium (Full) is $40, or 17 percent, less expensive than its predecessor. (Similar pricing is available in other markets as well.)

To help avert criticism, Microsoft and its retail partners will temporarily offer steep discounts on the Upgrade versions of Windows 7 Home Premium and Professional only. Consumers who preorder these products online between June 26, 2009 and July 11, 2009 in the US and Canada will pay just $49.99 for Windows 7 Home Premium (Upgrade) (a $70 savings) and $99.99 for Windows 7 Professional (Upgrade) (a $100 savings). The deals will be made available at Amazon, Best Buy, and Microsoft, and at other participating online retailers. Consumers in Japan, France, Germany, and the UK can also preorder Windows 7 for similarly short time frames, though the exact dates vary.

Microsoft also announced that it would allow consumers who purchase a Windows Vista-based PC between June 26, 2009 and January 31, 2009 to receive a free copy of Windows 7. Called the Windows 7 Upgrade Option Program, this program is global and completely free. Microsoft hopes it will address the problems caused by Windows 7 not shipping in time for the back to school PC selling season, which is currently underway.

The company also revealed that it will offer consumers in the EU the Full versions of Windows 7 only through at least December 31, 2009 because of antitrust issues there which preclude it from bundling Internet Explorer with the OS. During this time period, EU users (excluding the UK) will be able to purchase the Full versions of Windows 7 at the Upgrade prices. Traditional Upgrade versions of Windows 7 will appear in the EU eventually, Microsoft says, at which point it will return to its usual pricing structure.

There's a lot more going on here, including a few pricing issues that have yet to be resolved. For more information, please refer to my Windows 7 Pricing article on the SuperSite for Windows.

Discuss this Article 168

jimbednarz
on Jun 25, 2009
Windows 7 is a fantastic OS and well worth the $49 upgrade. Being a Microsoft fanboy, I'd pay the regular prices as well. However, beyond the promotional pricing, I think it would have been a huge positive for Microsoft among its average users to keep the price low. I wish they had done that.
CyBrett
on Jun 25, 2009
Can anyone confirm that you can use the upgrade media to do a clean install as long as you have the previous O/S? Thanks!!!
rlcronin
on Jun 25, 2009
mikegalos, I pretty much agree with all your points, but if you think thats going to stop Apple from using this pricing to ridicule MS in their commercials, you're dead wrong. Since when have the facts mattered to Apple? Perception is reality, and they will create the perception that the pricing is obscene and ridiculous, logic be damned. You know they will, and nobody will listen to or care about the facts.
Grannyville
on Jun 25, 2009
Looks like I'll be taking up the discount for students after all. I would have thought the upgrade edition of Home Premium be under $100, at least.
Webdev511
on Jun 25, 2009
I had hoped that pricing for the Home Edition would be better and include a much needed family pack. On the upside, the retail pricing won't reflect reality pricing.
resplendent
on Jun 25, 2009
You know, there's the "pony up" logic then there's actual logic. Charging Vista Ultimate users the same price to upgrade to 7 Ultimate as they are to XP Home users is insulting.
realtestman
on Jun 25, 2009
rlcronin, then more fool Apple. Intelligent people will see Apple for the lying untrustworthy idiots that they are if they decide to mock and will simply ignore them.
de Silentio
on Jun 25, 2009
Does anyone think the timing for the upgrade promotion is a little odd. It seems arbitrary and rather short. Is there a point to doing the promotion the way they did?
pmcgrath
on Jun 25, 2009
Master3 I never said MS should match the OS X price, which by the way only applies to upgrading for leopard. It's $129 otherwise. I just said they look like asses by comparison. Fact: Win 7 is version 6.1, so is a "Minor" upgrade from Vista, 6.0. Yes it’s still more of a minor upgrade then SL, but none the less, a minor upgrade. I paid $200 (on sale) to upgrade from XP to Vista Ultimate, a Major upgrade. Should I really need to spend an additional $220 to upgrade to Win 7? $420 for me to upgrade from XP to Win 7? Seems a little steep. $100 Vista Ultimate to Win 7 Ultimate is more palatable. I would even go as far as saying $50 since they mostly failed with Ultimate Extras, but that’s wishful thinking
rickhuizinga
on Jun 25, 2009
Congratulations Microsoft, you screwed you're best Windows Vista customers. I purchased Windows Vista Ultimate, in part due to the great "Ultimate Extras" that were suppose to be delivered. Microsoft abandoned that effort. Now that Windows 7 is coming out, the only edition that I can upgrade to is Windows 7 Ultimate. Yes, that's right - I got screwed on Windows Vista Ultimate and my reward is to overpay for Windows 7 Ultimate. An upgrade to Windows 7 Home Premium is not allowed. Thanks Microsoft. You really blew it!
mikegalos@msn.com
on Jun 25, 2009
ricronin Well, I certainly am not counting on Apple's advertising division to change practices and stop being deceptive and manipulative and playing fast and loose with the truth. But, hey, I guess it is technically not impossible. They've been pushing the "Snow Leopard and Windows 7 are both just equivalent upgrades" for about a month or so now and you can already see people repeating it as though it were true.
de Silentio
on Jun 25, 2009
@resplendent: "You know, there's the "pony up" logic then there's actual logic" How does "actual logic" dictate that Vista Ultimate users should get an upgrade discount?
lotsamystuff
on Jun 25, 2009
Big whoop. There's no real change here in retail pricing. You do kind of have to feel bad for Windows 6.1...er, I mean 7...beta testers (aka "Vista Users") who have to pay the same price as their XP counterparts after having done all the legwork for this maintenance release. Still, "mikegalos" is correct. The pricing really hasn't changed. The Microsoft Tax remains stubbornly in effect.
crankenstein
on Jun 25, 2009
Damn... Microsoft came 'so close' to getting it right this time. Oh well...
resplendent
on Jun 25, 2009
rickhuizinga and pmcgrath said it better than I did. The fact that Vista Ultimate users get absolutely no benefit to having bought in to it is insulting.
realtestman
on Jun 25, 2009
rickhuizinga, if you were stupid enough to buy Vista Ultimate just to get Ultimate Extras, then that's your loss. Fact is, Ultimate contained every single feature from all the other editions and was marketed as such. The "Extras" were that, just extras, little bonuses. You should be able to upgrade to any version of Windows 7, just can't do an "in-place" upgrade (where you keep your settings - and even then apparently the clean install will copy your settings anyway). So stop whining and get with the reality.
Ocean
on Jun 25, 2009
>>So if the RC is relatively stable for beta code it should be treated as though it was released product? That's just bizarre.<< Paul said it, not me. You're right. I'd still bet it was the RC and he said 'Beta' because the article was written for a general audience.
de Silentio
on Jun 25, 2009
@pcmcgrath: "Win 7 is version 6.1, so is a "Minor" upgrade from Vista, 6.0." So, was XP (5.1) a minor upgrade to 2000? And was Win 2003 Server (5.2) a minor upgrade to XP? That doesn't seem to be the case. I don't know about Apple, but Microsoft kernal point versions don't seem to dictate minor/major upgrade status.
tayme
on Jun 25, 2009
Wow...this has to be a record pace for so many comments. This is not a major deal. Microsoft is smart to not let Apple set the price of Windows. If you think its too high, don't buy it. If enough people skip it, the price is bound to go down... --tayme
realtestman
on Jun 25, 2009
ocean, well we can't assume, cos he was the one that said "beta", not RC. If he wrote incorrectly, then he's not a good fact-checking journalist, is he? Hardly a ringing endorsement of his article.
lotsamystuff
on Jun 25, 2009
"rickhuizinga and pmcgrath said it better than I did." Actually, Paul said it best: "And as I previously expressed (see Pricing Malfunction: How Microsoft will Bungle the Windows 7 Launch in WinInfo), Microsoft's byzantine approach to this could seriously derail excitement..." The fact that Paul needed three pages, two product matrix charts and over 1,300 words to describe Microsoft's pricing scheme in his overview is really telling. I know his motto is "never write one word when ten will do", but still. Pretty remarkable that it's so complex.
whiplash55
on Jun 25, 2009
I'm not surprised but I am a bit disappointed. They should have been way more aggressive in this" economic reset" we are going to be in for years to come. It isn't that big a deal for me but for a lot of people this will be beyond the price they will be willing to pay. I wonder if the OEM for system builders is going to be the same, looks like it, will MS continue to allow this loophole? These prices will simply encourage more piracy in the long run.
kent909
on Jun 25, 2009
I'm so glad I switched and only have to pay $29.
mikegalos@msn.com
on Jun 25, 2009
de Silentio "I don't know about Apple, but Microsoft kernal point versions don't seem to dictate minor/major upgrade status." Well, as far as Apple goes, they're all point releases since they've been shipping Version 10 of their operating system since March 2001 and are still on Version 10. They have also charged $129 as the upgrade price for four of these "point releases" (going to 10.2, 10.3, 10.4 and 10.5), nothing for one (10.0 to 10.1) and $29 for one (10.5 to 10.6) so it's pretty much impossible to tell just from Apple version numbers which "point releases" are major version changes, which are minor version changes and which are service packs.
chipwinter
on Jun 25, 2009
This is all a bit confusing. If I've got 5 machines here at home running XP, what will it cost me to upgrade to Windows 7? Is there a discount for XP users? And how about a bulk discount? And where would be the best place to buy them? Anybody?
lotsamystuff
on Jun 25, 2009
"They've been pushing the "Snow Leopard and Windows 7 are both just equivalent upgrades" for about a month or so now and you can already see people repeating it as though it were true." Oh, come on. "People" are just repeating what Paul's reported ("here FIRST on the PAUL THURROTT'S WINDOWS SUPERSITE FOR WINDOWS") months ago: Windows 7 is an evolutionary upgrade. There's nothing major going on here; the name change and interface tweaks are designed to remove the stigma of Vista. Time will tell if it succeeds, but let's at least be honest, "mikegalos": they really ARE equivalent upgrades in every area except pricing. That's the one area where Microsoft is definitely overreaching.
mikegalos@msn.com
on Jun 25, 2009
kent909 Well, if you really think that $29 is a good price for an upgrade to QuickTime, support for Microsoft Exchange and bunch of kernel bug fixes, that's lovely. I'm sure Apple is happy to take your money.
rlcronin
on Jun 25, 2009
tayme, sadly I think that's exactly what will happen (lots of people who might actually have bought it based on the extremely positive buzz thats been created for Windows 7, won't), and that's a shame.
kent909
on Jun 25, 2009
I don't know if you can call Vista to Win7 equivalent to 10.5 to 10.6. The real question is why would anyone care? How does it make any difference if it is or isn't?
kent909
on Jun 25, 2009
kent909 Well, if you really think that $29 is a good price for an upgrade to QuickTime, support for Microsoft Exchange and bunch of kernel bug fixes, that's lovely. I'm sure Apple is happy to take your money. Mike: If you think that is all that has changed in SL then you have clearly demonstrated that you do not know what you are talking about.
shark47
on Jun 25, 2009
Microsoft is not going to screw the OEMs by offering cheap upgrades forever. Most people get Windows with the hardware purchase. Few people upgrade. If you're one of those that does want to upgrade, get Windows before July 11. Big deal.
realtestman
on Jun 25, 2009
chipwinter, you get to pay upgrade prices x5 (so yeah a discount of sorts). There's no (and never has been) bulk upgrade prices, beyond what you may be able to haggle from your usual seller.
adamb1000
on Jun 25, 2009
I'm sorry but if MS thinks they can get away charging this much in this economy then there going to see Windows 7 sales be far lower than they expect. I use Windows Vista Business so I'm forced to pay $200 if I want to use windows 7? Thats way too much. As paul said in his article, the prices should be half that. The promotional pricing is nice but you have to wonder exactly how many people know of this deal and will take it. Anyway queue up the Apple ads that I'm sure Apple will run mocking the price.
shark47
on Jun 25, 2009
Most people will make a big deal out of this. Apple's charging $29 for Snow Leopard whereas Microsoft is charging >$100. Well, Apple controls hardware and software pricing on the Mac side. The company has a lot more flexibility in the area. In the end, Microsoft has done what is right for both consumers and OEMs.
mikegalos@msn.com
on Jun 25, 2009
lotsa Really. If you're going to echo the Apple marketing line at least be honest about it. How about this, Why don't you compare the new features and enhancements on www.winsupersite.com/win7 with the changes in OS X 10.6. Feel free to use the actual Apple page at http://www.apple.com/macosx/refinements/ if you need to look desperately for any new features. You'll end up with such trivia as "Improved resolution in iChat" and "Automatic Time Zone Update" Seriously, the user level features added in the upgrade from OS X 10.5 to 10.6 come down to an update to QuickTime, an extra icon layout mode usable in a couple of utilities, support for talking to Microsoft Exchange servers (for those few Macs in corporate use) and the kind of trivia that normally don't even get mentioned beyond footnotes in the documentation. But, hey, prove me wrong. Tell us all those major user level features that make going from 10.5 to 10.6 a compelling upgrade that's equivalent to all the features Paul lists for Windows 7.
adamb1000
on Jun 25, 2009
Also I would like to say that if Windows 7 ultimate gets anymore expensive it'd be almost cheaper to buy a technet subscription and use windows 7 ultimate that way.
mrose59
on Jun 25, 2009
CyBrett, According to microsofts FAQ you can do a clean install from the upgrade media (you of coarse just need legit copy of XP or Vista).
mikegalos@msn.com
on Jun 25, 2009
kent909, I did notice you didn't actually bother to list any of those compelling user level features in your reply and, instead, just huffed about how I didn't know what I was talking about. Feel free to take up the challenge I offered to lotsa and tell us all those user level features that were added with the upgrade to 10.6 that make it an equivalent upgrade comparable to what Paul lists in his Windows 7 features pages.
realtestman
on Jun 25, 2009
adamb1000, don't be silly. The prices are pretty much the same as Vista and they were selling in larger volumes than XP. You can buy the upgrade edition of any, you'll just won't be able to perform an in-place upgrade if 7 isn't Professional or Ultimate.
mikegalos@msn.com
on Jun 25, 2009
adamb1000 You're pretty much on the money for which users Windows 7 Ultimate targets. It's not meant for general users. It's meant for precisely the kind of Developers and IT Pros who get an MSDN or TechNet+ subscription because they need to have access to every possible feature set for testing the apps they write or manage.
DarkSages
on Jun 25, 2009
Check this out at engadget.com "Microsoft's hooked us up with 100 special pre-order codes for Windows 7, which are good for a 48-hour period starting tomorrow, June 26th, 2009. These codes (only available to U.S. residents) will guarantee you a pre-order of Windows 7 at the discounted prices of $49.99 for Home Premium and $99.99 for Professional, even if it sells out -- and it might"
lotsamystuff
on Jun 25, 2009
"Mike: If you think that is all that has changed in SL then you have clearly demonstrated that you do not know what you are talking about." Well, duh.
rickhuizinga
on Jun 25, 2009
@realtestman "rickhuizinga, if you were stupid enough to buy Vista Ultimate just to get Ultimate Extras, then that's your loss" Stupid enough? How about defrauded? Anything but an in-place upgrade is insufficient. I have terabytes of recorded TV stored on my Windows Home Server that will not playback under a new operating system installation.
RunTimeError
on Jun 25, 2009
Oh mikegalos. You never, EVER cease to amaze and entertain. Whatever the Microsoft equivalent of the "Apple Cool-Aid" is, you, without a doubt, go through a couple of kegs a day.
crankenstein
on Jun 25, 2009
I guess I'll just use my Windows 7 RC till it expires, then go back to Vista Ultimate. I was really looking forward to the Win 7 'upgrade'... But at that price I can see no reason to take that route.
mikegalos@msn.com
on Jun 25, 2009
Interesting. I've had multiple personal attacks about what's in OS X 10.6 but nobody's been willing to list those mythical user level features that make it "the equivalent upgrade" to Windows 7. Well, that's pretty much par for the course.
Ocean
on Jun 25, 2009
>>I guess I'll just use my Windows 7 RC till it expires, then go back to Vista Ultimate.<< I'll be buying myself a new laptop when the RC expires. Giving it away for almost a year was stroke of genius on MS' part.
lotsamystuff
on Jun 25, 2009
"nobody's been willing to list those mythical user level features that make it "the equivalent upgrade" to Windows 7." We've learned to swim past your bait.
lketchum
on Jun 25, 2009
I am pleased to see Microsoft respect themsleves and their pricing. It is business rule #2: Respect your pricing, or no one else will. Windows is worth the price. Windows 7 is very solid certainly worthy of being presented as a major upgrade for both XP and Vista users. It is not as monumental an upgrade as XP to Vista was, but it is still very significant. Microsoft, most especially Microsoft, needs to drive their own case in this race. They need to largely ignore those they seem to chase after - chase the market, perhaps, but never the guy in front of your, or pull the guy behind. The pricing is more than fair.
lotsamystuff
on Jun 25, 2009
All in all, not bad for 29 bucks (particularly the new features for people with disabilities): http://www.apple.com/macosx/accessibility/ http://www.apple.com/macosx/refinements/ http://www.apple.com/macosx/refinements/enhancements-refinements.html http://www.apple.com/macosx/technology/

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