Vista pricing scheme doesn’t sit well with Acer

Acer is expressing discontent over Microsoft’s pricing scheme for Windows Vista. As announced last month, Microsoft intends to sell two “home” versions of Windows Vista: one so-called Vista Home Basic version that will cost the same as Windows XP Home, and a pricier Vista Home Premium edition. However, in an interview with UK magazine PC Pro, Acer Senior VP Jim Wong has said Vista Home Basic will be rejected by consumers because of its missing features, and that Microsoft will effectively be forcing consumers to go with Vista Home Premium.

“The new [Vista] experience you hear of, if you get Basic, you won’t feel it at all,” says Wong. Indeed, Vista Home Basic will lack the Aero user interface, media center functionality, tablet PC support, and DVD authoring. Wong says Vista Home Premium is “the real Vista,” but that because its OEM license costs 10% more than Vista Home Basic’s, “[Acer will have] to pay more but users are not going to pay more.” The total cost of building a system will go up by 1-2%, he claims—an unwelcome hike considering the small size of margins in the consumer PC business. PC Pro says other PC vendors also have no plans to ship systems with Vista Home Basic due to a perceived lack of demand. Thanks to The Register for the tip.

Comments closed
    • PenGun
    • 13 years ago

    Since when is DVD authoring, a very simple process, part of the OS. I’m just a simple Linux rat so I don’t understand.

    PenGun

    • sweetmaster666
    • 13 years ago

    Vista Home Basic is the OS decreed by the USA and EU that doesn’t burden consumers with MS innovation at rock bottom prices but instead gives them a choice of more costly third party products from companies with larger lobbying budgets.

      • Gandhi
      • 13 years ago

      LOL – you have to be kidding me! Too bad Microsoft “innovation” killed off Netscape.

        • accord1999
        • 13 years ago

        What killed Netscape was Netscape’s “innovation”

          • Gandhi
          • 13 years ago

          Well, i guess Netscape got the last laugh – its progeny now challenges IE7 (successfully IMO)

      • sigher
      • 13 years ago

      TOTAL UTTER BULLSHIT, no governemtn is involved in that whatsoever, idiot

    • opinionated
    • 13 years ago

    Vista Home Basic is a response to the European Union’s fines. How can the EU object to an operating system that has nothing integrated into it? You get what you ask for EU.

      • sigher
      • 13 years ago

      yeah yeah, everything is the EU’s fault, they also made your brain fail you know, bastards

    • StashTheVampede
    • 13 years ago

    Microsoft should “give” away the “Home” version. Strip it of the latest and greatest stuff (Aero, DVD authoring, DVD playback out of the box) and get people “on” Vista ASAP. Allow the credit cards to “buy” new functionality, so people could easily (lol) upgrade to the pieces they want.

    Make the EULA specific so that a machine cannot be SOLD with “‘home” on it (OEMs cannot sell systems with Home installed).

      • indeego
      • 13 years ago

      That is a very interesting idea. I wonder if it would have antitrust concerns thoughg{<....<}g

    • Gandhi
    • 13 years ago

    Glad to see at least one computer maker having the guts to call out MS on thier tactics

    • kilkennycat
    • 13 years ago

    Read section 15a of the Windows Vista Retail (Basic/Home/Ultimate) EULA. Only one re-authentication permitted; no legal redress – the licensee “signs” the EULA on installation. Just buy another copy…..WindowsXP Retail EULA has no such limit. Unlimited transfers between hardware are permitted, provided the previous hardware has the OS completely removed. Most of those reading The Tech Report are PC enthusiasts, upgrading their hardware many times over the “Life” of the OS, so you can forget Vista — at least until the EULA reverts to that of XP.

    • Krogoth
    • 13 years ago

    It seems Microsoft is wanting to make sure that Vista is an utter disappointment.

    The basic version does not even have all the eye candy nonsense that average joe is the only group that cares about it? MS is just shooting a shotgun to its foot.

    • DrDillyBar
    • 13 years ago

    I’ll just buy Ultimate on my education fund. Done.
    As for everyone else, Consumers will likely pick Basic because they don’t know better, and MS will end up with a fee for upgrading to Home Premium. MS is supposed to make getting an upgraded key simple enough for this to be part of the scheme.

    • Baddle Tech
    • 13 years ago

    Doesn’t sit well with me either.

    • indeego
    • 13 years ago

    I wouldn’t be so sure.

    Aero ain’t all that.

    People still aren’t buying tablet PC’s, and as for media center edition, people buy that version to fit a need anywayg{<.<}g

      • blastdoor
      • 13 years ago

      I could be wrong, but I suspect that the primary motivation for most people to upgrade to Vista will be Aero. Sure, MS has done a lot of work to improve the underlying guts of the OS, but the advantages of that are not immediately clear to people, whereas Aero is very shiny (although not functionally useful).

      With two computers sitting side by side at Best Buy, one running Aero and the other not, which do you think people are going to go for?

        • indeego
        • 13 years ago

        The cheaper one, like they do now? Except you can’t really make a machine very cheap with aero versus a machine without aero and you can make it cheapg{<.<}g

          • blastdoor
          • 13 years ago

          Intel integrated graphics isn’t cheap??

            • indeego
            • 13 years ago

            DirectX 10 hardware sure won’t be cheapg{<.<}g

            • blastdoor
            • 13 years ago

            SFAIK, Intel’s integrated graphics will support DX10. It won’t be fast enough to play games, but it will be able to run Aero.

            • barich
            • 13 years ago

            GMA X3000 already supports DirectX 10, or at least it will when the drivers are available. I’m sure it will be horribly slow for games, but Aero really doesn’t take much. I’ve run it on a Radeon 9600SE, which is one of the slowest DX9 cards you can get, and it runs fine.

            In fact, any shipping machine today is going to have at least GMA 950, GeForce 6100, or Radeon Xpress 200, all of which support Aero just fine. 1 GB of RAM is also required, but only the cheapest PCs have less than that at the moment.

            • indeego
            • 13 years ago

            “1 GB of RAM is also required, but only the cheapest PCs have less than that at the moment.”

            And “only the cheapest PC’s” is also what I’m talking about. Most retail PC’s don’t have a gig of RAM, still, in 2006, standardg{<.<}g And GMA X3000 is shared memory, the more for graphics, the less for the systemg{<.<}g

            • accord1999
            • 13 years ago

            But you don’t need DX10 to run Aero. A GMA950 will run Aero smoothly.

            • stdPikachu
            • 13 years ago

            The cheapest PC’s here in the UK still come with 256MB RAM, which is hardly enough to run 2K without thrashing. People are brainwashed by the ultra-fast 3GHz Celeron and will buy anything as long as the price tag is low enough. Heck, one of the companies my company acquired shelled out for 100 Compaq workstations with 2.8 -> 3.2GHz P4’s and 128MB of RAM less than 18 months ago.

            Vista Basic will sell by the truckload, whether it deserves to or not.

            • Taddeusz
            • 13 years ago

            I had Vista with Aero running just fine on a system with a 9700 Pro and 512MB of RAM. It ran without a hitch.

            • Baddle Tech
            • 13 years ago

            I ran Aero on a system with a 6600GT and 512mb of ram just dandy

            • slot_one
            • 13 years ago

            And I ran Aero on a Tualatin-core P3-1.13GHz with a 9800XT and 2 gigs of RAM. Despite the sluggish processor, those 3D windows were opening nice and quickly.

    • RickyG512
    • 13 years ago

    wat about the one that was called something like ultra

      • Lord.Blue
      • 13 years ago

      You mean Vista Ultimate Edition? That’s the most expensive(it’s placed above Pro for built in functionality and it’s the version that MS is letting people test out now so they get used to all the toys, then when they can’t get everything that they are used to in Home Premium, they buy the upgraded license from M$. The retail price of Ultimate is $399.99 or something like that.

    • A_Pickle
    • 13 years ago

    I completely agree. The sales of Vista are retarded… the “Home” and “Professional” system worked just fine. Now we have nine million different editions, with Windows Vista Ultimate costing up a storm at $400.

    Bullshit, Microsoft. Bullshit.

    • dragmor
    • 13 years ago

    I’m waiting for “Vista Golden Sample XXX Edition”, then I’ll know when they are pissing on me.

      • l33t-g4m3r
      • 13 years ago

      *cough* Ultimate *cough* 400$! *cough*

    • Vrock
    • 13 years ago

    Yeah, I agree with Mr. Wong. What good is Vista Basic? Seems like MS just stuck it in there to justify raising the price for the “real” product.

      • blastdoor
      • 13 years ago

      I also agree with that point.

      One thing that I would point out, however, is that the argument about the increase in costs to OEMs hurting their profitability is slightly flawed. If they all face the same increase in costs, then they can all raise their prices to partially offset that increase in costs. Their profits will go down slightly due to the reduction in overall demand resulting from the price increase, but they won’t lose the full 1 to 2 % — their profit reduction will be a fraction of that (it just depends on consumers’ demand elasticity).

      And finally, let me just say, two Wongs don’t make a right.

      • d2brothe
      • 13 years ago

      Thats exactly what they’re doing, its market placement, and its usually not this bad…usually the low end product, is at least somewhat useful, and the highend product is at least somewhat deserving of the higher price, but this is terrible. Anyone who says Aero isn’t part of the reason to upgrade, has probably never even heard of Apple…lemme put it this way, the people, who would be most likely to buy basic, ie. those who might also buy a mac, or might not know that much about them and pick it mainly based on colour, will want the aero feature the most. but comming from MS, this is nothing new.

    • replay
    • 13 years ago

    I saw that Home Basic was missing the Aero Interface today while sitting in the NewEgg/Vista web conference and thought, “WTF”? Aero is part of the hyped up new feature of Vista, and yet Home Basic won’t include it? Give the non-enthusiast even less reason to upgrade from their current Windows XP Home.

      • timbits
      • 13 years ago

      Presumably the Vista Home Basic user will get a service pack before 2008

      • indeego
      • 13 years ago

      Why would an “enthusiast” use XP home? I thought they liked overpaying for what they getg{

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