A press release dropped into the PCW inbox this morning talking about Microsoft's plans to cut the price of retail copies of Windows Vista. Unfortunately there were no details on how this might affect UK pricing.

According to our US correspondent the price of the full version of Vista Ultimate in the US will drop from $399 (£201) to $319, and the upgrade version from $259 to $219. He surmises that cuts of 20-40% in other markets are possible.

Whatever the details, more significant is that Microsoft has finally all but admitted that it got Vista's pricing policy wrong, something that users in the UK could have told it from day one. According to the Microsoft statement today, price promotions around the world had shown that reducing the price had increased sales. Judging by today's news, these extra sales must have more than made up for the lost unit revenue. Welcome to the wonderful world of retail, Microsoft!

Confirmation just in has scotched our hopes that it would put paid to the current ludicrous £1=$1 pricing of Vista in the UK. In a statement, Microsoft UK said: "While our retail partners ultimately set the prices in the market, we anticipate that the new pricing of Windows Vista SP1 in the UK will be largely comparable to those people are seeing today."

Thanks a bunch, Microsoft.

Kelvyn Taylor
Editor, Personal Computer World
www.pcw.co.uk

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