Microsoft cuts Vista Prices to boost sales

In what has been a particularly exhausting fortnight for Microsoft, the company has announced that it would be cutting prices of Boxed Windows Vista in 70 countries, in an apparent bid to boost sales and get people to replace XP by Vista.

It is the first time that Microsoft is slashing the costs of its flagship products across an entire range, although prices of OEM Vista would still be the same.

Microsoft only resorted to cutting Windows XP prices in certain countries to combat piracy under very strict conditions.

Vnunet reports that Microsoft would also eliminate upgrade versions in developing nations to encourage the use of genuine software.

The move comes as Microsoft suffered a few blows over a looming scandal on how the company bowed over to please its closest ally, Intel, at the expense of thousands of its customers.

The cuts will range from 20 percent to 48 percent with Visa Ultimate dropping to $219 in the US, a move that entice the 100 million or so current Windows XP owners to move over to bling bling Vista.

Microsoft expects to make up for the price cuts by selling more licences in volume, thereby increasing total revenues, something that has been tested before at Microsoft HQ.

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