Microsoft cuts Vista price

Vista is getting a price cut at retail. Is this a desperate act to increase sales?. Home Premium and Ultimate editions will be discounted when Microsoft ships the first service pack of the OS.

Corporate vice president for Windows consumer product marketing said:

“Windows Vista has been on the market for more than a year now, with more than 100 million licences sold in its first year. While this is great progress … we’ve observed market behaviour that suggests an opportunity to expand Windows stand-alone sales to other segments of the consumer market. Over the past year, we conducted promotions in several different markets combining various marketing tactics with lower price points on different stand-alone versions of Windows Vista. While the promotions varied region to region, one constant emerged – an increase in demand among consumers that went beyond tech enthusiasts and build-it-yourself types.”