Menu
Expert: Microsoft earned US$1.5B from Vista Capable programme

Expert: Microsoft earned US$1.5B from Vista Capable programme

An expert has determined that Microsoft may have earned more than US$1 billion from its controversial Windows Vista Capable sticker programme, which is still at the centre of a class-action suit being decided in a Washington state court.

In a court report, Keith Leffler, an associate professor in the University of Washington's Department of Economics, estimated that Microsoft derived revenue of $1.505 billion from its Vista Capable programme, in which the company partnered with hardware vendors to put stickers on PCs letting customers know the machines could run Vista reliably.

Though portions of Leffler's statement were redacted, it appears he based his estimate on revenue figures he received from Microsoft. His statement was made public as part of a class-action lawsuit filed March 2007 in the US District Court for the Western District of Washington in Seattle by Washington resident Dianne L. Kelley. She claimed that Microsoft's programme was deceptive because a PC she purchased could not run a premium edition of Vista. The case is still pending.

Microsoft's hardware partners began shipping PCs with the "Windows Vista Capable" logo in April 2006 as a way to let customers know if they purchased a new Windows XP PC before Vista was available, their machine could easily be upgraded. However, the designation was potentially confusing because a PC with the label was only guaranteed to run the least expensive, most basic version of Vista, called Home Basic.

A month later, Microsoft launched a website to explain the hardware requirements for different versions of Vista, as well as a new PC designation called "Windows Vista Premium Ready." Microsoft used the new designation to label PCs that could run premium editions of Vista -- such as Home Premium and Ultimate -- which have more features than Home Basic. The company also provided coupons for people who purchased these PCs to upgrade to the appropriate version of Vista either for free or for little cost once the OS was made available.

Many see Vista ultimately as a failure for Microsoft, as many consumers have complained about the OS and many business customers have opted to skip it and run Windows XP until Vista's follow-up release Windows 7 is available. This is all in spite of the fact that Microsoft spent more than five years developing Vista and claimed it would be the most successful OS for the company since Windows 95.

Microsoft CEO Steve Ballmer is widely expected to unveil a beta of Windows 7 during his keynote scheduled for Wednesday at the Consumer Electronics Show in Las Vegas. Windows 7 is due for release early next year, but some think it may be available sooner in time for the 2009 Christmas holiday shopping season.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Microsoftinternational news

Featured

Slideshows

The making of an MSSP: a blueprint for growth in NZ

The making of an MSSP: a blueprint for growth in NZ

Partners are actively building out security practices and services to match, yet remain challenged by a lack of guidance in the market. This exclusive Reseller News Roundtable - in association with Sophos - assessed the making of an MSSP, outlining the blueprint for growth and how partners can differentiate in New Zealand.

The making of an MSSP: a blueprint for growth in NZ
Reseller News Platinum Club celebrates leading partners in 2018

Reseller News Platinum Club celebrates leading partners in 2018

The leading players of the New Zealand channel came together to celebrate a year of achievement at the inaugural Reseller News Platinum Club lunch in Auckland. Following the Reseller News Innovation Awards, Platinum Club provides a platform to showcase the top performing partners and start-ups of the past 12 months, with more than ​​50 organisations in the spotlight.​​​

Reseller News Platinum Club celebrates leading partners in 2018
Meet the top performing HP partners in NZ

Meet the top performing HP partners in NZ

HP has honoured its leading partners in New Zealand during 2018, following 12 months of growth through the local channel. Unveiled during the fourth running of the ceremony in Auckland, the awards recognise and celebrate excellence, growth, consistency and engagement of standout Kiwi partners.

Meet the top performing HP partners in NZ
Show Comments