Microsoft Cuts Price Of Windows And Office For OEMs

The Wall Street Journal:

In late February, Microsoft offered PC makers the deal of Windows 8 plus Office for $30 for touch-screen devices under 10.8 inches, according to one person familiar with the situation. This compares with around $120 previously. Touch-screen devices above 10.8 inches can still get the discounted Windows 8 price, but Office isn’t included, this person said.

When I saw the headline of the Journal’s article, I had presupposed the discounts would be small and inconsequential. I was surprised that it was actually quite a substantial cut.

I think $90 is a large enough reduction to have an impact on OEM manufacturing decisions, but I don’t think it is enough to reverse the diminishing appeal of Windows 8 devices. Sales can’t change the underlying opinions of consumers on products; Microsoft needs to rethink several key deficiencies in Windows 8 to have a chance at changing that.