Microsoft (finally) cuts Vista’s price

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In a surprising move, Microsoft has said that it will lower the prices to several different versions of its latest version of its operating system, Windows Vista.

For those in the US, it’s only cutting the higher-end versions of Vista, but only those that are used for upgrading a version from an earlier copy of an Windows OS. Vista Ultimate drops to $219 from $299 and Home Premium falls to $129 from $159.

Other countries will also see the price cuts, while Microsoft is elimnating the names of “Full” and “Upgrade” versions between Home Basic and Home Premium in emerging countries to convince many users to use genuine software.

It has surprised analysts by the news.

According to CNET, Vista’s sales have been badly trailing those seen in XP for the first six months. This could be due to the price or that you will need a new computer or buy new computer parts to get Vista running in top condition. It is rare to have a computer that will have a Base Score of 5.

Price cuts have been rare in Microsoft’s case, with many retailers opting to do small price cuts as specials. However, this will change the Recommended Retail Price (RRP) to the amounts mentioned. Microsoft did the same thing to its Windows XP Media Center Edition. Initially pitched as an high-end version above XP Pro, it lowered its price to be higher than XP Home and not XP Pro. That move has seen an increase of sales and also saw XP Media Center being the dominant consumer version.

Vista’s code was finalized in late 2006, however it held back the retail launch until January 2007. It has currently sold more than 100 million copies, but is trailing behind XP’s sales in its early days.

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