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InfoWorld: Microsoft and hardware vendors collude to fix netbook prices
Tuesday, May 26, 2009 - 11:55 AM EDT

"Microsoft is colluding with netbook hardware vendors to deny customer choice and protect profits," Randall C. Kennedy reports for InfoWorld.

"It's the question vexing hardware vendors everywhere: How do they seize on the fervor and froth of the netbook craze without cannibalizing sales of their higher-priced, higher-margin notebooks?" Kennedy reports. "Now we're hearing that Microsoft is about to weigh in on the matter. The company already muddied the netbook hardware waters when it set forth its byzantine "maximum hardware requirements" for netbooks running Windows XP Home. And with Windows 7 just around the corner, the company is reportedly preparing an updated set of parameters. In a nutshell, the acceptable netbook screen size is decreasing (from 12.1 inches to 10.2 inches), the acceptable storage capacity is increasing (from a 32GB solid-state drive or 160GB hard disk drive to 64GB SSD/250GB HDD), and restrictions on touch and other Windows 7-centric features are being lifted."

Kennedy reports, "The whole situation reeks of the worst kind of collusion, with Microsoft helping certain at-risk hardware vendors to deny their customers choice by letting them hide behind the straw man of software licensing costs. Do you like that shiny, new netbook on the shelf? Want one with the same general specs but a slightly larger screen? Then get ready to go with a second- or third-tier vendor and pay through the nose!"

Full article here.

MacDailyNews Take: The very smartest tech users are 100% Microsoft free.

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May 26, 09 - 12:01 pm Comment from: Howard

Stupid PC users.

Drool over a $250 netbook, then realize it's underpowered and limited.

Then they buy a $450 Vista laptop and realize it's slow.

So they rub ashes over themselves and pray towards Redmond for Windows 7.

Only to realize it's as slow as Vista. When they try to run their XP apps under Vista's emulation, realize half won't work.

So by now they are ready to switch to a Mac or commit suicide.

Of course now they are broke, so fsck em.

May 26, 09 - 12:15 pm Comment from: whatever4real

I like microsoft and I like having other options in the computing market. I choose not to use their products because they are crappy at best. Microsoft products show how well designed other options are. If people are willing to buy other products because of the price, then so be it. I buy cheap milk because of the price and I don't fault others who do the opposite. Long live Microsoft, and may Apple live FOREVER!!!

May 26, 09 - 12:26 pm Comment from: Derek in Milan

Netbooks have their uses.
I bought an LG110 only to run a Windows XP only navigation program which someone gave me.
Cost of a new GPS module found in a microsoft 'streets and maps' was $20 from Craigslist.
Total cost of GPS plotting setup was $470 - thats about $1500 less than a GPS Chart Plotter.

Battery life is very poor, its always connected to a small inverter.
Screen is bright and clear.

I dont use it for anything else.

May 26, 09 - 12:34 pm Comment from: Cubert

Maximum hardware requirements?!?!? Is that a typo or is Mafia$oft really going to prevent the installation of XP home on computers that are "too fast for it"?

May 26, 09 - 12:53 pm Comment from: Predrag

Cubert,

Of course it is! If you could install XP on any new hardware, who in their right mind would buy Vista (or 7)?

They have continued selling XP to OEMs, but only for the netbooks. OEMs are now screaming that the hardware limitation for XP (for those netbooks) is too low; they want to sell faster netbooks, but with XP, and not Vista (as to avoid totally crippling the speed), so MS is bumping it up to allow slightly bigger machines to qualify as netbooks, but to make sure full-sized laptops don't, so that they have to buy Vista.

May 26, 09 - 01:08 pm Comment from: HMCIV

Darn you Microsoft!!! Cause I want a Netbook with a quad core processor, and a 17" screen!

May 26, 09 - 01:09 pm Comment from: Cubert

Predrag,
Unfreakinbelievable!

Minimum speeds I understand but maximum?!?!?

May 26, 09 - 01:22 pm Comment from: Not Bill

Hey Balmer, what do you mean I can't get leather with my four cylinder, carbureted Chevy Vega! You car salesman you.

May 26, 09 - 01:43 pm Comment from: ApplePi

Apple limited the Mac Mini, too.

They limit the video output of the Touch and iPhone too.

I see no difference here.

May 26, 09 - 01:48 pm Comment from: Mr. Reeee

Once a monopolist, always a monopolist.

Microsoft got into the position of power they're in for exactly this sort of behavior. Shame on the DoJ for not HAMMERING them when they had the chance.

If Microsoft was EVER forced to compete on level field...
there would be more than one Zune.

May 26, 09 - 01:51 pm Comment from: HazMatt

Nice attitude, Howard.

May 26, 09 - 01:54 pm Comment from: Macaday

Buy a 3 year old Mac. 1,000% better value.

May 26, 09 - 02:49 pm Comment from: Zune Tang®

You MAC sheep are jealous because MAC doesn't make a netbook. Where Microsoft leads MAC follows—if they're still in business.

Your potential. Our passion.™

May 26, 09 - 03:07 pm Comment from: Hm...

Sorry, ApplePi, but there's a *huge* difference between limiting your own product for your software and forcing others to limit their products in order to use your software.

It kind of reminds me of the artificial "region" crap on DVD players that the MPAA colluded to foist on the world in order to tightly control the release of movies.

May 26, 09 - 03:18 pm Comment from: Zune Tang®

I give up. I'm buying a Mac. There is no MAC. Only Mac.
To hell with all at Redmond.

Your Tang. Our OJ.

May 26, 09 - 04:54 pm Comment from: thethirdshoe

Hell freezes over. vampire

May 26, 09 - 05:59 pm Comment from: Predrag

As 'Hm...' said, there is a difference.

OEMs (Original Equipment Manufacturers, such as HP, Dell, Acer) buy Windows from MS and pre-install it on their hardware. They would all love to be able to buy and pre-install XP on all of their hardware. If they did, nobody would be buying Vista pre-installed. However, Microsoft doesn't allow them to do that. MS only allows sales of XP (9-year old OS) to be sold on netbooks. And that's why they have a very specific maximum hardware requirements for XP. If your PC has better specs than those, you can't sell it with XP -- you must bundle it with Vista instead. OEMs cried hard for bumping up some specs for netbooks, so that they can sell slightly better models and still put XP on them. MS responded by allowing bigger hard drives, but reducing the allowed screen size.

May 26, 09 - 07:56 pm Comment from: Olmecmystic

It's amazing the gyrations M$ has to go through to keep Windoze selling! The time will come when it won't matter WHAT they do.

Why do the Stockholm Syndrome having, OS-limited, PC-using lemmings/sheeple keep putting up with this crap!?!

Get a Mac and leave the dark side once and for all!

Peace.
Olmecmystic cool smile

May 26, 09 - 10:44 pm Comment from: amyhre

I see BitTorrent searches for XP cracks and downloads going through the roof. No one's gonna buy a netbook just to get XP when for the same price they can buy one of the many versions of Vista and put it on their existing PC (home-built or whatever). Fortunately, I've got XP already (legally) for Boot Camp so I don't give a fsck what the other side does with their money.

May 27, 09 - 01:24 am Comment from: Hint Hammer

Really, really, gotta have a netbook?

http://www.linux-netbook.com/

wink

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