Get PJ Media on your Apple

VodkaPundit

Race to the Bottom

February 27th, 2014 - 8:38 am

Microsoft has a smart new CEO, but this is a move which stinks of flop sweat:

Citing people familiar with the matter, Bloomberg reports Microsoft will slash Windows licensing fees by 70 percent for low-cost hardware manufacturers in an attempt to regain marketshare lost to devices running iOS, Android and Chrome.

Under the supposed pricing scheme, OEMs will pay $15 to preinstall Windows 8.1 on devices that sell for less than $250. The fee is down from a traditional rate of $50 per device. Further, Microsoft will not impose restrictions on hardware size or form factor as long as the final product meets the required low retail price.

The problem isn’t the OEM’s slim-to-none margins — although they are a problem and lower licensing fees will help. The major problem though comes in two parts.

• Microsoft has failed time and again to adapt to mobile

• As a result, Microsoft’s licensing model has fallen apart

Cutting prices for a product few people want — which isn’t even sold directly to people — does nothing to make them want it. You’ve got to fix the product.

TANGENTIALLY RELATED: BlackBerry is moving downmarket, too.

Comments are closed.

All Comments   (9)
All Comments   (9)
Sort: Newest Oldest Top Rated
No, the major problem comes in 3(three) parts:

• Microsoft has failed time and again to adapt to mobile

• As a result, Microsoft’s licensing model has fallen apart

• Windows 8 . anything sucks.
41 weeks ago
41 weeks ago Link To Comment
That Microsoft could produce and market a product as ugly and disfunctional as Windows 8 is something of a miracle. One look, and you barf, yet somehow that POS got through QA without a peep.
41 weeks ago
41 weeks ago Link To Comment
Heh.
41 weeks ago
41 weeks ago Link To Comment
Hey, dumping software on the market worked before, why not again?

I reiterate my previous position: These people really are that stupid.
41 weeks ago
41 weeks ago Link To Comment
I quit buying Windows when MSFT wouldn't let me reload newer versions without their permission. W2K is still fine for my needs.

The death of Windows will be marked by Photoshop's being published in a Linux version.
41 weeks ago
41 weeks ago Link To Comment
... which will happen exactly never, for the video driver and piracy issues alone.

The majority of graphics work has been done on OS X for quite some time. If anything the death of Windows will result in Apple and Adobe becoming more chummy. They'll either build Creative Suite as a Mac-only product, or toy around with rolling their own GFX-centric OS.
41 weeks ago
41 weeks ago Link To Comment
The wild card here is that someone, someday, might build a good user interface for GIMP. Most of what I use Photoshop for now can be done on GIMP, but nowhere near as easily.
41 weeks ago
41 weeks ago Link To Comment
If someone made a sane GIMP interface, it may well be a viable option for the hobbyist. For the professional, it is nothing of the sort.
41 weeks ago
41 weeks ago Link To Comment
Wait a minute. You're saying Blackberry is STILL around?

Huh.
41 weeks ago
41 weeks ago Link To Comment
View All