Microsoft Vista price cut extends to Gulf nations

Cost for boxed copies of Vista Home Basic slashed in half

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By  Quintin Smith Published  March 3, 2008

Microsoft has announced that the recent $100 price cut on boxed copies of Windows Vista Home Basic, Vista Home Premium and Ultimate will extend to the Gulf region.

The recommended retail price for Vista Home Basic is now AED 399 ($109, down from $204), with Home Premium at 550 AED ($150, down from $244) and Vista Ultimate at 1,199 AED ($326, down from $407).

In the case of Vista Home, the price cut brings the cost of a boxed copy in line with the cost of upgrading an existing copy of Windows.

The price of copies of the OS preloaded onto personal computers will not be affected.

Brad Brooks, corporate vice president for Windows Consumer Product Marketing, explained the cut and why Vista Business wouldn’t be receiving it: “Today, the vast majority of Windows licenses are sold with PCs; retail stand-alone sales, in contrast, have been primarily from customers who value being early adopters and those building their own machines. We’ve observed market behaviour, however, that suggests an opportunity to expand Windows stand-alone sales to other segments of the consumer market.”

Chris Swenson, an analyst for NPD, notes that the cost of getting a new PC has fallen significantly over the last few years while boxed copies of Windows have remained high.

The move also coincides with the delayed public release of Vista service pack one, which Brooks explains is because “We’re trying to make this as easy and efficient as possible for our retail partners to update their displays once.”

Vista’s Service Pack 1 was found to have <incompatibility issues> when it was released with Windows Server 2008.

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