Microsoft Reduces Prices for Windows 7 E

Because of the possibility that traces of Internet Explorer could be left on the upgrade machine, Microsoft decided not to offer an Upgrade version of Windows 7 E upon release in October (the upgrade version will be delayed for some time until Microsoft can find a way to make the upgrade between Windows Vista and Windows 7 E seamless, due to the demands of the European Union). As a result, many customers were not happy when they learned of Microsoft’s intent to sell the full version of Windows 7 E in Europe at a price equivalent to a little over $430 (for Professional, Home Premium will be about $280). Even the pre-ordering prices of Windows 7 were about twice as much as the pricing in the United States.

Since the announcement, many users have accused Microsoft of driving up the prices of Windows 7 in Europe due to the decision of the European Union, taking out the costs of the case on the end-users. In the midst of the accusation, Bill Veghte, Senior Vice President of Microsoft, attempted to explain the higher pricing for Windows 7, stating that the price also included the VAT, or Value Added Tax (about the European equivalent of the Sales Tax), which accounted for roughly 18% of the cost. Even so, Veghte also warned that the prices for Windows 7 E could climb higher when the Upgrade version is released, stating “in the future we may have an upgrade offering of Windows 7 available in Europe, and at that time we would revert to differential pricing of the full and upgrade versions, as we have in the rest of the world.”

However, it seems as though Microsoft has decided to respond to the angry customers in Europe, as they have adjusted the price for Windows 7 E’s full version to match the price of the upgrade for Windows 7 in the United States. Now, thanks to the change, European customers can get the full version of Windows 7 E for less than the full version of Windows 7, at least until 31 December, 2009 (possibly the release date of the Upgrade versions of Windows 7 E).