Windows 7 May Equal Fewer Bargain Netbooks

Microsoft must perform a tricky balancing act as it tries to keep Windows on netbooks but not get stuck in a market that generates little revenue, say industry analysts.

The software giant has still not disclosed how much it plans to charge PC makers for Windows 7 on netbooks. But an increase over the current $15 price for Windows XP is inevitable, says Richard Shim, PC analyst at research firm IDC.

PC makers will face pressure to keep price points down, Shim says, even as Microsoft charges them more for Windows 7 on netbooks than for XP. Microsoft plans to make the limited Windows 7 Starter version and Windows 7 Home Premium available on netbooks, with Home Premium likely costing more.

To be clear, Microsoft has not announced how much it plans to charge PC makers for any versions of Windows 7. Microsoft executives are saying that the average price that PC makers pay for Windows (across all versions) is $50. It currently charges PC makers $15 per copy of Windows XP on netbooks.

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