In an interesting move Microsoft announced it will sell Windows 8 Pro upgrades for $39.99 at least initially. Windows 7 Pro upgrade is about $150. It’s a huge price cut. Also noteworthy is that you can upgrade from one of the more basic versions of Windows 7 to pro. Microsoft also reduced the number of editions down to 4.
Given Apple has been doing under $30 for upgrades, it was only a matter of time. However in Apple’s case, the software is an accessory to the hardware. In Microsoft’s case, they don’t sell hardware. My bet is they are hoping the OS will be the platform to which users engage with Microsoft services.
This is somewhat ironic given Windows 7 was a modest upgrade (technology wise) from Vista. Windows 8 is a complete rethinking and a much bigger investment. The pricing is inverted.
This is Microsoft’s big move to not be marginalized by the internet into the “expensive software that you don’t really need to run a web browser”. Microsoft just kept themselves relevant. The question however is can they make a business out of this strategy?