The Morning After: A Look at the New Normal in Windows 8 Upgrade Pricing

Windows 8 pricing returns to the normal price points and the world doesn't end

You were warned, and repeatedly. But if you visit windows.com or an electronics retailer today, you’ll find that Microsoft has reverted to its normal Windows 8 Upgrade pricing, which other tech outlets have incorrectly described as a “500 percent price hike.” Still, after a few months of incredibly reasonable pricing, these more typical prices—the new normal, same as the old—are a bit tough to take.

I wrote previously that these “new” prices are in fact identical to those of the previous Windows version, Windows 7. See Fact Check: Windows 8 Pricing Identical to That for Windows 7 for details. Today, I’d like to just examine what’s changed when buying Windows 8 as we move past the promotional pricing bubble.

Windows 8 “Core” Upgrade

One major change is that the Windows 8 (“Core”) Upgrade is now available for purchase. Before February 1, 2013, you could only acquire this basic version of Windows 8 through a new PC purchase.

The Windows 8 “Core” Upgrade is $119.99, both on windows.com (electronically) and from retail outlets like Microsoft Store, which offers this software electronically, in traditional retail packaging, or in a download + disc format. In case it’s not obvious, this means that there is now a web installer version for Windows 8 Core, and not just Windows 8 Pro as before. Or, put more correctly, you can now choose between Windows 8 and Windows 8 Pro when you use the web installer.

Now that Windows 8 Core is widely available, I’ll publish something about choosing between this version and Windows 8 Pro.

Windows 8 Pro Upgrade

Previously available at an enormous discount electronically and a decent discount in retail form, Windows 8 Pro is now $199.99 no matter how you buy it. You can still do the electronic route at windows.com or you can visit retail outlets such as Microsoft Store.

Windows 8 Pro Pack

This curious offering is aimed only at users with Windows 8 “Core.” It upgrades your PC with two components, Windows 8 Pro and Windows Media Center, and costs $99.99. You can only purchase the Pro Pack electronically from within Windows 8 Core: Just use Start Search to find Add Features to Windows 8 (hint: It’s under Settings).

Windows 8 Media Center Pack

This offering is aimed only at users with Windows 8 Pro. It upgrades your PC with what is basically the Windows 7 version of Windows Media Center and costs $9.99. (It was free until January 31.) You can only purchase the Media Center Pack from electronically from within Windows 8 Pro using Add Features to Windows 8 as described above.

Windows 8 OEM versions

Because all modern PCs are eligible for the Windows 8 upgrade versions, Microsoft no longer offers “Full” versions of Windows as it did in the past. And while you can (and should) use the directions in Clean Install Windows 8 with Upgrade Media to perform a clean install with Windows 8 Upgrade or Windows 8 Pro Upgrade (and, if necessary, use the workarounds in Clean Install Windows 7 with Upgrade Media to get it activated without calling Microsoft), some people will still need a software product that equates to the old “Full” packaging. So system builders—small companies that build PCs—and even enthusiasts who build their own PCs from scratch and thus do not qualify for the Windows 8 upgrades, can purchase so-called “OEM” versions of Windows 8.

Excluding multi-license packages, you will find the following (with links to Newegg):

Windows 8 (“Core”) OEM 32-bit - $94.99

Windows 8 (“Core”) OEM 64-bit - $99.99

Windows 8 Pro OEM 32-bit - $134.99

Windows 8 Pro OEM 64-bit - $139.99

As you can see, these prices are lower than what Microsoft charges for the Upgrade versions. But you should be aware of a few things. First, you can’t upgrade an existing PC with these packages. And second, I can’t imagine why anyone but a system builder building a Clover Trail-based device would put a 32-bit version of Windows 8 on new hardware. If you’re going to go OEM, buy a 64-bit version.

Hopefully, you took advantage of Microsoft’s crazy promotional pricing on Windows 8 Pro Upgrade before. But if not, at least you know your options. And of course, there are still some promotions available. For example, Students can get Windows 8 Pro Upgrade for $69.99. And as was the case with the Windows 7 Family Pack, I hope and half expect to see it return temporarily in the future, perhaps timed for the next holiday season.

Time will tell.

Discuss this Article 24

mghartman
on Feb 1, 2013

This reminds me of Nintendo DS vs. cell phones.. Games like Angry Birds sell gazillions @ 99 cents and Nintendo games sell millions @ 30 bucks.. Both are making tons of cash and there's other forces at work like cartridge costs and gameplay "quality" but I think there's just a shift in consumer mentality that they don't *have* to pay $30-60 for a lasting gaming experience.. Nintendo claims that iOS games for $1-5 don't have the quality their [more expensive] games have, but the simple fact is people are more willing to pay for (and write-off) a bad $1 game than a $30 one..

Apple posting OSX upgrades for $20 and iOS for free has shifted this mentality of paying hundreds of dollars for OS upgrades. I think MS needs to evolve with the times and accept volume over profit margin, because volume can lead to profitability.

I had a software partner who sold their product for $5.. They knew it was buggy, but their feeling was, "we'll give them a refund if they really want it." And they probably had very few returns.

Yuxie
on Feb 1, 2013

Some people don't even want to pay $1 for an app: that's where jailbreaking comes in.
The Windows version of jail breaking? Torrents.

Waethorn
on Feb 1, 2013

"I think MS needs to evolve with the times and accept volume over profit margin, because volume can lead to profitability"

You mean like big box stores ala Best Buy and Circuit City?

Ya that business model works, now doesn't it?

pratnala
on Feb 1, 2013

"First, you can’t upgrade an existing PC with these packages."

But I can do a clean install correct?

pthurrott
on Feb 1, 2013

Yes. That's what they are for.

alvatrus
on Feb 1, 2013

Microsoft has offered Windows 8 for enthusiasts for a limited period of time for a reasonable price. Non-enthusiasts will get it with their regular hardware upgrade.
Enthusiasts (such as me) are fine running it on a non-touch computer, the general public will run it with touch-supporting devices.
Businesses will probably pay the full upgrade because they won't make a migration decision in such a short time span (if at all.)
It seems to me that everybody is catered for. I really don't see any controversy, except some site whipping into a frenzy because they want the of advertising income.

developer
on Feb 1, 2013

"Windows 8 pricing returns to the normal price points and the world doesn't end".

Paul, yes, but Windows 8 upgrade sales end.

vermonter@hotma...
on Feb 1, 2013

Paul;

Where does this leave the small business who wants to build their own PCs in-house?

Previously, they were - if they wanted to be 100% legal - forced to purchase the full retail version of Windows. The OEM version specifically required an unrelated third-party build the system. I realize, of course, the virtually no one did this, and MS probably didn't care, but that was the letter of the license agreement.

Has that language been changed now that there is no "retail" version any longer, only "upgrade" and "OEM?" Is it now explicitly stated that an IT shop that wants to build their own systems for in-house use can do so?

pthurrott
on Feb 1, 2013

You can buy the OEM version legally.

navarac
on Feb 5, 2013

Windows 8 Pro upgrade was noted at £49 in the UK in Asda (part of Wal*Mart). Correct on 5 Feb).

Fleet Command
on Feb 1, 2013

So, if I were to buy Windows 8, I'd buy the clean install version anyway: I pay less AND get to keep my previous Windows license. (e.g. if I needed to set up a virtual machine.) I do a clean install and move my old setting manually.

zorb58
on Feb 1, 2013

Wait, I actually don't get it... Why are the publicly available OEM versions cheaper?

vermonter@hotma...
on Feb 4, 2013

OEM versions of Windows are supported by the OEM system builder, not Microsoft. This transfers to cost and burden of supporting Windows from Microsoft to the OEM manufacturer.

ian.berg
on Feb 1, 2013

I suppose there's a chance these price points will be reduced in autumn, 2013 if Windows 8 sales are not lower than what Microsoft had projected internally.

sharpsone
on Feb 1, 2013

I just don't see the reasoning behind this. They need to slash the price point by 50% across the board. The US economy stinks and nobody wants to pay $200 or even a $100 for an OS. Maybe this is Microsoft's way of helping PC sales. A number of people would probably pay $200-$300 more for new hardware.

SamR
on Feb 1, 2013

While I do think the new standard prices for Windows 8 upgrades are too high in this post PC era characterised by cheap devices and free or very cheap OS upgrades I do think we should really be grateful.

Microsoft has actually given all its enthusiast friends a huge bonus with the promotional $40 and $15 upgrades to Windows 8. Any "enthusiasts" who did not know about this must have been living under a rock.

I am all in on the Intel side and all is good.

Thank you Microsoft !

gameguy73
on Feb 1, 2013

You can buy the Pro Pack at a brick and mortar store. Best Buy sells them. It's just the code for it like the windows 8 upgrade. It was 69.99 but is now 99.99.

Avenger30
on Feb 1, 2013

As far as the 32-bit OEM, I guess there may be a few enthusiasts building their own zero-noise HTPC around fanless Atom processors & SSD... Which brings a question: if Microsoft really cares about this (marginal?) market, why do they price Windows so high when the competition is... free Linux?

pthurrott
on Feb 2, 2013

Two things.

1. Because they can. Free Linux has exactly 1 percent market share. No one wants it, which is doubly obvious because it is free.

2. It's not actually expensive. People acquire Windows with new PCs, not at retail. The retail version requires Microsoft to support the software, which is expensive to them. The PC bundles are supported by the PC maker.

yuhong
on Feb 4, 2013

"exactly" 1 percent? I agree with your point, but...

Spektor
on Feb 2, 2013

Well it's obvious that MS doesn't care about the upgrade market and they felt that anyone who was going to upgrade an older machine would have done so already.

Only a fool would spend $200 on a product like 8 on an older, non touch machine at this point. $40 was almost too much to ask for, given 8s inherent UI problems, but $200? Please.

MS is just going to wait for existing XP/Vista/7 equipment to die off and be replaced over time with 8, or hopefully, something actually better.

gnsks
on Feb 2, 2013

I considered "upgrading" because of the reasonable pricing but honestly the only powerful enough incentive I could find is that Windows 8 will be supported for longer than Windows 7. I ended up not doing it anyway because by the time that becomes a real concern I would have replaced my laptop and get whatever Windows comes preinstalled on the new one. For me it was not so much about money but saving myself time and headaches for no real benefit.

I really hope the next version comes with something more than touch-oriented features than can justify the upgrade. I paid gladly the upgrade from Vista to 7 just to get the new taskbar, for example. There's nothing that enhances the user experience like that for desktop users in Windows 8.

spinedoc
on Feb 2, 2013

Stupid, but MS has been making a lot of stupid moves lately. There isn't enough in Win8 for it to be considered a true upgrade, it's more along the lines of the updates OSx gets. I thought MS was going to do more frequent but cheaper updates? $40 for win8 makes sense because it's such a small upgrade, then charge us $40 every year like Apple, but to pay the full price for Win8 is OS suicide, especially in light of it's very bad reception by the public.

I got 3 key codes while they were still cheap though. I would NEVER pay the full price for them, and I'm a hardcore tech user who always has to have the latest and greatest no matter the cost. I can imagine what ambivalent consumers and businesses will feel like.

It's a huge shame, I was really hoping MS would make this all work, but the amount of dissonance in this company is just amazing.

mod6538
on Feb 3, 2013

"I can’t imagine why anyone but a system builder building a Clover Trail-based device would put a 32-bit version of Windows 8 on new hardware"

It would be a waste to put 64-bit OS on my Shuttle barebone HTPC with 2GB of RAM, which runs just fine with 32-bit OS. Putting 64-bit OS on a system with less than 4GB makes no sense.

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