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Monday, January 26, 2009

Microsoft's Windows Vista "Capable" bill could hit $8.5 billion

A Microsoft marketing scheme persuading consumers to buy PCs "capable" of running Windows Vista could cost more money than Microsoft made from the program. Microsoft is calculated to have earned just $1.5 billion in Windows licensing from the program, which ran between August 2006 and July 2007.

Upgrade costs are based on the fact that consumers who'd bought a Windows XP machine designated as "capable" of running Windows Vista would need to buy additional RAM and a video card and the fact some notebooks couldn't run Windows Vista. Consumers by spring 2006 knew Windows Vista was coming and were likely to have held off buying PCs until Windows Vista shipped. That would have damaged sales of PCs and revenue from Windows licensing.

Microsoft refused to comment on the document, beyond what it had said in its own filings in the case.

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