Fact Check: Windows 8 Pricing Identical to That for Windows 7

There's been a lot of whining this week. It's all unnecessary

In the wake of this week’s announcement about pending changes to Windows 8 upgrade pricing, there’s been a lot of outrage about Microsoft “jacking up” the price of the new OS. But here’s a shocker: Windows 8 will soon cost exactly the same as Windows 7 did before it. So instead of looking at this as some kind of disaster, why not just appreciate the months of low-cost upgrades we’ve received?

If this event proves anything, it’s that people won’t be happy no matter Microsoft does. Well, that and that many seem to have selected memories.

Here’s what really happened.

Last year, in the months leading up to the release of Windows 8, Microsoft revealed two limited-time special offers aimed at upgraders. The first, called Windows Upgrade Offer, mirrored earlier offers aimed at those who purchased a PC with a previous Windows version. In this case, the version was Windows 7, and the purchase date has to be between June 2, 2012 and January 31, 2013. You get can Windows 8 Pro Upgrade for just $14.99 (US), an incredible bargain.

The second was aimed at the normally tiny market of people who perform their own upgrades to the latest Windows version: Courtesy of a special promotion that Microsoft announced in July 2012, anyone with a qualifying PC—that is, virtually any PC on earth; it just has to have come with Windows XP, Vista, or 7—can electronically upgrade to Windows 8 Pro for just $39.99. This offer expires, as promised, on January 31, 2013.

This week, of course, Microsoft affirmed that its previously-announced promotions would be ending and that normal pricing would return. That pricing works out as follows:

Windows 8 (Core) Upgrade: $119.99

Windows 8 Pro Upgrade: $199.99

Readers have reacted with a stunning display of anger at this pricing, as it were not previously expected or that the special promotions were anything but temporary. But it’s instructive to remember how Microsoft priced the identical Windows 7 product editions when that Windows version launched. That pricing works out like this:

Windows 7 Home Premium Upgrade: $119.99

Windows 7 Professional Upgrade: $199.99

It’s identical.

Furthermore, while Microsoft did not offer special promotional pricing for Windows 7 Professional three years earlier, it did offer something called the Windows 7 Family Pack. This provided three copies of Windows 7 Home Premium Upgrade for $149.99, for a limited time, and was broadly praised for being a tremendous deal. (It was so popular Microsoft brought it back, again temporarily, during the holiday 2010 buying season.)

This past year’s special promo pricing for Windows 8 Pro was a better deal. A much better deal.

First of all, you don’t have to buy three licenses all at once. You can buy them one at a time, and can buy up to five of them.

Second, this past year’s promo was for Windows 8 Pro, a higher-end product edition, with more and better features, than the Windows 7 Home Premium version we got three years early. And yet it costs $10 less per copy purchased.

The reaction? Again: Outrage. How dare Microsoft make Windows 8 Pro available so cheaply for a pre-set period of time and then simply begin pricing it normally exactly when they previously announced they would do so. How dare they!

Folks, please.

Fact is, with the one exception of Windows 7, which artificially benefitted from a poor reception to its predecessor, virtually no one upgrades their own PCs from one version of Windows to the next. It’s fair to say that almost everyone who wanted to take advantage of the promo pricing on the Windows 8 Pro Upgrade already did so.

So what’s with the outrage?

There are other advantages to the changes we’ve seen with Windows 8 pricing, too. Microsoft did away with Full product editions because all existing PCs qualify for the upgrade. So you can save money there. And the OEM pricing for Windows 8? It’s cheaper than the Full pricing for Windows 7.

Geesh. If you want the Upgrade, just get it now. And instead of damning Microsoft for screwing you over, why not just thank them for what is quite clearly the best promotional pricing for any major Windows upgrade in history.

Discuss this Article 64

red77star
on Jan 21, 2013

Microsoft is being arrogant and lame by asking this much of $$$. First of all Windows 8 is not usable on most devices due its broken UI, secondly offers nothing worth upgrading over Windows 7 and it looks like it is designed by a kid from pre school. What a joke!

LemonSaucy
on Jan 22, 2013

They are probably being smart. Windows 8 had a run at it and the public finds it to be the reject that it is. Now they have to take care of their brand. To keep the brand perceived as a "quality" brand and desirable, they have to keep the price up. Windows 8 makes Windows seem "cheap", which probably isn't good.

Therefore, for those who care about the current low price and who for some bizarre reason actually want a retail copy of this cripple-ware, go get one now before the end of January 2013.

Otherwise, wait and save up for Windows 8.5 Correction ed. (with real DVD playback, just like Windows 7) or Windows 9 .. .. or just use 7.

red77star
on Jan 21, 2013

And something more...what justifies lack of dvd not to mention blu ray support...another joke!

Win Factor
on Jan 21, 2013

Paul, I had the impression that you said (implied?) on Windows Weekly a ways back that MS was likely moving to a model more like Apple, with low cost upgrades but perhaps annually instead of every three years. I think the surprise is not that these revised prices are the same as Win7, but that we didn't know the pricing was temporary, and in fact thought this might be the new norm. Am I incorrect that you implied this would be the case? That's why I think the reactions are stronger than you might expect.

pthurrott
on Jan 21, 2013

As noted somewhere above in this mess of comments, the Windows 8 Upgrade is an upgrade for PCs, not devices. It doesn't actually benefit Microsoft to have too many traditional PCs running Windows 8. They need new device sales, new form factors that take advantage of the new interface. If they do this again for Windows 9, they're screwed. But doing this with Windows 8 isn't just OK, it makes sense.

And again, we have/had a TREMENDOUS $40 upgrade for months. Anyone who wants/needs this has NO excuse to have not taken advantage of it.

DogmaHunter
on Jan 21, 2013

"wouldn't Microsoft be better of charging $40 "

How would any company be 'better off' by selling their primary product with a loss?

Microsoft is a software company in the first place. They sell software. As long as they don't build up a big hardware business or another cash cow, they will not be throwing software around for practically no money.

Comparing this with android or any os made by apple is beyond stupid and shows a serious lack of understanding how these businesses work.

For example, mac os X might cost "only" 30 bucks, but try and install it on a 6-year old mac... You can't. You'll have to fork out another 2-3 grand for a new mac because the old one is "not supported".

Meanwhile, I've installed win8 on pc's purchased in 2002 without any problems and even increased their overall performance.

"As a normal user, I hope for a day when I can work with just a Chromebook."

yeah, good luck with that.

realtestman
on Jan 21, 2013

Paul is right - the price Windows 8 is moving to is exactly the same as Windows 7.

However, I'm not sure we can simply dismiss all the outrage yet, because is there a case for arguing that the pricing model that has applied for the last three years (with Windows 7) isn't going to work for the next three years?

Also, if upgrades is insignificant (which it is, as it's always been stated that Microsoft makes insignificant amount of money from upgrades compared to OEM and volume licensing sales), then why not just leave the price as cheap as possible then?

Bruce McDonald
on Jan 21, 2013

"I'm not outraged at the price shift, but perplexed."

Me too.

Considering a sizable chunk of the known world are avoiding Win 8 like the plague (I still can honestly say that as of today - I am not aware of a single one of my 50 closest tech collegues that have upgraded) - how can cranking the price up over 200 bucks be a good thing?

MS is literally ensuring that no one will give this a go post Feb 1.

And even tho the "pricing increase" is the same as Win 7 - there was a huge difference. People actually wanted to buy Win 7 as fast as humanly possible because it was a really good OS. (and put Vista in the read view mirror immediately)

B

Spektor
on Jan 21, 2013

Not counting the benefits of the OS itself, which, personally, I find marginal if not worse, I guess the only reason I could consider upgrading to 8 would be that perhaps that would make it cheaper to later get an upgrade to 9? When hopefully reason will have prevailed and free choice of UIs would be restored to the OS? Or perhaps that would allow an easier upgrade, with all programs and files being upgraded without requiring a clean install.

Although in the past it does not seem to have mattered. I can't recall the last time there was a discount from upgrading one version up, versous older Windows versions. I think there was not even an upgrade price for going from Vista to 7 unless you had bought a Vista machine within a short period prior to the release of 7. Everyone else had to pay full price.

It's a crapshoot on a discount which may never even materialize.

LemonSaucy
on Jan 22, 2013

The price had to be low:

1. With Metro, they (the Microsoft folks) were monetizing Windows i.e. making it a platform not to serve the computer customer, but to shove advertzing at him or her via Metro. Like anything, it's hard to convince people to pay for someone else's advertizing.

2. The quality of the Desktop was deliberately reduced. They obviously couldn't expect customers to pay for a clobbered and crippled Desktop - the life sapped out of Aero - poor colour settings, sometimes even difficult to see - bleach out anemic toolbars and so on - no choice vis avis a Start button - Explorer back and forward buttons way too small and colourless - settings hither and tither.

Funnily enough there were some improvements - faster boot, ribbon concept toolbars in Windows Explorer, more secure "repair" mode so to speak - but it only takes a few dirty flies swimming in the soup to turn the customer off - yet Windows 8 has more than a few (and there's a decaying toad in there as well).

Things considered, a low price isn't good for the brand. It makes Windows seem "cheap". And with Windows 8.5 Correction edition or Windows 9 on the horizon, it is probably wise of them to raise the price to a respectable level (and let's hope they drop Metro for Desktop PCs entirely .. put it in the samer place they flushed " Push technologies" to).

So, yes, if they are going to fix Windows, the new pricing is entirely fair.

Einago
on Jan 22, 2013

Paul I have one major disagreement with your assessment that Windows 8 pricing is the same as Win 7. The fact is Win 7 home premium had more features than Windows 8.

Home premium included dvd playback and MCE if I want those features in Windows 8 I must buy the pro pack which means for the same features in Win 7 HP I now need Windows 8 Pro. This is not pricing equality.

You will off course use the argument that hardly anyone uses these features but that is no comfort to the people who do! As you rightly state the people who are most likely to buy a Win 8 upgrade are the enthusiasts and while I accept MCE usage in particular is low among this enthusiast community it will be much higher. I also see the DVD playback being a big issue, yes sure I can go and find some freeware to do it or maybe buy a 3rd party product but the fact is I didn't have to do this with Win 7 and if I want to keep this functionality in Win 8 it will now cost me a lot more.

If Microsoft had offered the mce and dvd playback pack to Windows 8 for the nominal fee of $10 this would have been much more acceptable to now expect me to have to jump to pro to get these features is a bridge to far.

And finally why not just go ahead now and take the plunge on the introductory upgrade pricing? Well I have for one of my machines but the package is unopened gathering dust. For the rest of my machines I am not convinced that I will go with Windows 8 ever so why waste my money? I might just plump for a shiny new Mac in the future. And while the entry point for Macs are higher the enthusiast community historically spend more on their hardware, both my main PCs cost way over $1000 so $1400 is not that big a jump.

pthurrott
on Jan 22, 2013

No, the argument is that these features are already on the PCs people are upgrading: They're part of a previous Windows version and/or were preinstalled by PC makers. Anyone who needs this and is doing an upgrade already has it.

Lucas dos Santos
on Feb 4, 2013

You are lucky! Here in Brazil, Windows 8 Upgrade pricing is identical to that for Windows 7 FULL! It's a shame!

p097o8l6
on Feb 12, 2013

Microsoft certainly deserve an income for creating and maintaining an OS. And if I see a Vista machine crawling, stalling and stuck on the "black screen of boot", I would definitely think that Win8 would breathe life into the thing.

At a cost of €279 (equivalent to $375) for an upgrade for an ageing machine, or €700 for Office Pro it doesn't get bought. It is just too high of a one-off investment compared to the price of a new machine.

Any chance that techies could act as small scale partners/ evangelists and install the software on colleagues / friends machines at real OEM prices?
They have to deal with failing upgrades etc, moreso than Microsoft Support.
Microsoft will make their money on 20% of app sales and hopefully the subscription version of windows 9 will be priced acceptably.

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