Microsoft Sets Windows 7 Pricing

| About: Microsoft Corporation (MSFT)

Microsoft (NASDAQ:MSFT) has set retail pricing for Windows 7, and unveiled an upgrade program allowing anyone who buys a PC with Vista installed to upgrade to the new version of the OS once it launches in October. The upgrade program starts Friday. Accounting for the program will result in the deferral of some revenue that otherwise would have been recognized in the June quarter.

Here are the details on estimated retail pricing. First, for upgrades:

  • Windows 7 Home Premium, $119.99.
  • Windows 7 Professional, $199.99.
  • Windows 7 Ultimate, $219.99.

And for the full packaged versions:

  • Home Premium: $199.99.
  • Professional: $299.99.
  • Ultimate: $319.99.

The company said PCs with Windows 7 will start shipping October 22. The software will be available initially in 14 languages, with 21 additional languages shipping on October 31.

The company has also unveiled an introductory offer for pre-orders, available through July 11 in the U.S. and Canada and July 5 in Japan; there will be a similar offer for customers in the U.K., France and Germany starting July 15 until August 14. Special pricing is as follows:

  • Home Premium, $49.99
  • Professional, $99.99.

Microsoft said that to account for the upgrade option, about 50% of revenue from eligible sales will be deferred to the earlier of the fulfillment date or the program’s expiration. The company expects to defer about $200 million to $300 million of revenue in the June quarter to reflect accounting for the program.

MSFT Thursday is up 21 cents, or 0.9%, to $23.68.

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