As Windows 7 begins its assault on the consumer retail marketplace today, so far, despite a few questionable decisions, the marketing, merchandising, and retail preparation appear to be clicking on all cylinders. Since I’m not a product reviewer I can’t comment on how “insanely great” Windows 7 might be, but I can give Microsoft kudos for the preparation and first spate of advertising. Let’s look at 3 buckets.
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Microsoft released lots of interesting details today on Windows 7 release schedules and pricing. There were three main announcements: First, and one that is pretty good but that has already been widely reported, is that PC upgrades on Vista machines bought between now and the end of October would be free from Microsoft, with any cost (normally S&H) being charged by the PC OEM. This is within expectations and is the good for both the consumers and the OEMs. We should see a very minimal stall from the transition as these very low cost upgrades are offered to consumers. In addition, the excellent timing of the general availability of Win7 (between back-to-school and Black Friday) ensures that student buyers can’t wait until general availability to buy and holiday consumers are taken care of. All-in-all a big A+ for timing, pricing, and for ensuring that this will be the smoothest transition within the industry of any Windows OS upgrade yet.
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PC software has oftentimes been linked to the canary in the coal mine. As purchasing and downloading software virtually has become so pervasive some say PC software is the precursor to the death of the store, just like the canary warned the miners of old. In that spirit I would like to point out that NPD just released a new report from our software group about online software purchasing. One of the issues we highlighted in the press release deserves more insight as it directly addresses this. According to the report, 63% of PC software sales online were downloads, that is a virtual sale and delivery, but approximately one-third of those folks opted to also have a shiny disc sent along. And 37% said they didn’t want a download, just the disc (and the pretty box!!). Adding it up that means that 59% of all online buyers wanted the box. So, while some segments of the industry may tout that virtual product and the cloud will make the store (or the box) obsolete, the consumer’s perception is not quite the same.
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Consumer Technology, Software | Stephen Baker, Vice President, Industry Analysis | 
October 22, 2009 9:39 am | 
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