NPD: Vista and Office 2007 drove software sales this year

Contrasting with the survey we reported on this morning, NPD Research has published a new report that paints a favorable picture of Windows Vista’s success. As eWeek’s Microsoft Watch explains, the report says the software category that has seen the biggest year-over-year increase in sales this year is operating systems, with growth of 49.4%. NPD Director of Software Industry Analysis Chris Swenson elaborates:

“Although shrink-wrapped Windows Vista is selling below shrink-wrapped XP levels in US retail at the same point after its release many years ago, year-over-year retail sales of Windows are up significantly over 2006,” Swenson said. He attributed some of the large growth rate to the “sawtooth” effect. “We were at the bottom up of the XP sawtooth last year.”

However, it was Microsoft’s Office 2007, and not Vista, that was the big software sales driver between January and October of this year. Swenson says the new Office “commands 17.4 percent of all PC software dollar volume, including PC games.” Thanks in large part to Vista and Office, the software market has seen a significant revival: NPD says year-over-year growth was 9.7%, compared to an average of -0.5% per year from 2000 to 2006.

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    • l33t-g4m3r
    • 12 years ago

    Obviously, but only because it costs so damn much.
    It could have been half the number of people in sales, but it’s still double/triple the average cost of regular software even at half.

    I’ve been using Open Office, and there is no need for me to buy microsoft ever again, especially at their prices.

    What do you call someone who pays 500$ a year for the same software?
    A sucker.

      • kaikara
      • 12 years ago

      There are very few people that pay retail prices for Office. Most get in in volume licensing or other cheaper packages like the student and teacher edition.

      • Disco
      • 12 years ago

      If you check the requirements for the upgrade version, all that you need is any ‘recent’ version of MS works, which comes free with pretty much all new computers. The upgrade version is less than half the cost of full retail, which is what I purchased. So basically, no one should ever have to buy the full retail, even if you don’t have a previous version of Office.

        • kaikara
        • 12 years ago

        And you don’t even mention OEM versions. If you buy a full retail version with so many other options you are a fool that has more money than brains.

          • indeego
          • 12 years ago

          Does that make people without money intelligentg{

    • evermore
    • 12 years ago

    I think they under-appreciate the “sawtooth” effect’s…uhm, effect on the sales. It’s the first time in 5 years there’s been a new consumer Windows. Not a lot of people had any need to buy a new OS when it was just the same thing they’d been getting for the previous 4 years. Then there’s a new version, lots of people will just upgrade right away. I doubt it really has a lot to do with “people just love Vista!” or anything of that sort.

    • PRIME1
    • 12 years ago

    What other software is there to buy besides a MS OS and Office?

    Everything else is either free, internet based or a paid for download that NPD does not track.

      • BenBasson
      • 12 years ago

      In terms of commercial operating systems that you can buy separate from hardware, you have a point somewhat – but don’t forget the server/enterprise market (i.e. RHEL).

      I’ve no idea what NPD track, but there’s plenty of commercial software. For starters, you could replace Microsoft Office with WordPerfect Office or StarOffice, both of which are considerably better than OOo.

      There are also hundreds of products licensed at high prices for enterprise use for which competent and free alternatives do not exist (see XMLSpy, TOAD). You might not personally install them for home use or otherwise, but these are surely part of the statistics.

    • jackjohnson011
    • 12 years ago

    Gotta love the college student special.

    $59.95 – for Office Ultimate 2007

    §[<http://www.theultimatesteal.com<]§ Where i live we have 2 huge microsoft facilities and I bought Office Ulitmate 2007 for my dad through a microsoft employee. Microsoft employees get Office Ultimate 2007 for 75 bucks. kinda nice that i get office ultimate 2007, since i am in college, for less than what microsofts employees have to pay.

      • flip-mode
      • 12 years ago

      Uni of Cincy: $10 Vista Ultimate and $10 Office Ultimate. Plus tax and, heh, tuition.

        • droopy1592
        • 12 years ago

        Help me get that!

      • indeego
      • 12 years ago

      We stayed with Office XP and saved tens of thousandsg{<.<}g

        • A_Pickle
        • 12 years ago

        Or $60. 😀

    • Sargent Duck
    • 12 years ago

    didn’t know what think of Office 2k7 at first, but after spending 10min with it writing my first paper on it, I was hooked. Everything is laid out, and nothing is hidden in those menus. Going back to Office 2k4 feels like going back to windows 3.1.

      • BenBasson
      • 12 years ago

      I was the same. I’m enjoying the new additions as well as the interface changes.

      For professional report writing, Word 2007 is absolutely awesome:
      – word count and proofing error indicator integrated into the status bar
      – much easier to use numbered headings (1, 1.1, 1.1.1) and styles
      – nice integrated equation editor
      – good cross referencing features and citation management

      Excel is pretty much the same as it always was, but with very nice conditional format management (and as far as I can tell, new conditional format possibilities).

      Haven’t really used any of the other applications that much.

      • Disco
      • 12 years ago

      I have the new office as well. Generally I like much more than the old Office 2000 which I’ve used for the past 7 years, but I really wish I could customize the mini-toolbar. It’s such a great little tool, and with just a few different buttons it could be so much better. That’s my only gripe with Office 2007, is the lack of customization (adding buttons to the very top access toolbar doesn’t really count).

      One other thing – if any of you are experts at this. I find that the colour schemes in excel make if difficult to identify ‘selected’ cells against the worksheet. The shading is just not dark enough to pick them out easily. Is there any way to modify some file somewhere to improve the contrast of ‘selected’ cells (and I don’t mean applying some special format – just the selection). I couldn’t find anything anything with a few quick internet searches. thanks for any advice.

    • Forge
    • 12 years ago

    I’m sure the 500$-ish price of Office 2007 Pro versus the 50$-ish price of most games didn’t hurt either.

      • DrDillyBar
      • 12 years ago

      There’s the $100 Enterprise Version too, but I got that through the Home Usage Program from Work.
      §[<https://hup.microsoft.com/<]§ Got Office Pro/Visio/OneNote 2003 and Office 2007 Enterprise that way. Uber-cheap!

    • albundy
    • 12 years ago

    office 2007 takes some getting used to, but has a nice feel to it. the beta screwed me over, as the final release refused to open .docx files saved with the beta.

    wish i could say the same for vista.

      • mongoosesRawesome
      • 12 years ago

      there was a converter for that.

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