Free Windows 10? PCs Could See Big Price Drop

Early last year, Microsoft released a free version of Windows for manufacturers that produced tablet computers with screen sizes smaller than nine inches. Known as "Windows 8.1 with Bing," the forecast was to make a big difference to the economics for manufacturers weighing up which operating system to use on its devices.

Analysts are now speculating whether Microsoft will do the same with Windows 10 and, if so, whether the offer will apply on traditional PCs. It also raises the possibility that Microsoft could face accusations of unfair behavior in promoting its search engine.

Windows and MS Office Cheap or Free for Tablet Makers

Now a document published on Microsoft's site for manufacturers has revealed more details. It shows that officially Microsoft charges $10 for Windows 8.1 on small tablets, and $25 on large tablets. However, Microsoft then immediately applies a $10 "configuration discount", making the price $0 and $15 respectively. (Source: zdnet.com)

The document also shows that with both tablet sizes, manufacturers can choose to include a one year subscription to Office 365 at no cost. The catch is that all of these deals are only available if the manufacturer agrees to set any pre-installed browser to use Bing as its default search engine, and MSN as its default home page. The user is able to change these defaults to any other service, including changing to a different browser if desired.

The revelations come as industry experts are speculating about the possible pricing for Windows 10, including how much manufacturers will have to pay to put it on new machines. While Microsoft has rarely published details, and appears to vary pricing depending on how many computers a firm wants to manufacture, historically manufacturers are believed to have paid $50 or more.

Cheaper PCs Could Be in the Works

A big reduction on that fee, if passed on to consumers, could mean a noticeable drop in computer prices. (Source: arstechnica.com)

Such a move, especially if applied to all computing devices, could also spark controversy over Microsoft appearing to give firms financial incentives to favor its online services. Previous attempts to force firms to use Internet Explorer as the default browser on Windows PCs have led to major legal battles on both sides of the Atlantic.

It's important to note a couple of differences with the current situation. The Windows 8.1 deal offers discounts if companies make Bing and MSN the default, but doesn't force them to do so. It also only applies to specific settings in the browser, rather then affecting what browser manufacturers install.

What's Your Opinion?

Do you expect Microsoft to offer similar discounts for manufacturers with Windows 10? Would a price drop in the region of $50 make you more likely to buy a new computer running Windows 10? Do you think Microsoft is acting fairly in tying its pricing offer to search engine and homepage settings?