Is Windows getting more expensive?
Is Windows getting cheaper or more expensive?
"If you break down the cost of the software over the life of the PC, it works out to be less than how much you'd spend on milk for your family over that same period of time," Brooks said. Now that Windows Vista has been on store shelves for about a month, it makes sense to take stock of how it stacks up from a value perspective. On the side that makes it feel cheaper, there is more in Windows than ever. Built into Vista are several types of programs that have, until now, cost extra. It has antispyware, voice recognition software included in the box, and other programs, such as Virtual PC, are available as free downloads. And, while Microsoft has kept prices roughly flat, inflation means that in absolute dollars, the price of Windows has declined somewhat. An upgrade to Windows 98, for example, cost US$109 (S$166.69) in 1998. But in 2007 dollars, that's US$137 (S$209.51), according to a Federal Reserve Web site. Today, a copy of Vista Home Basic upgrade costs S$179.05 (US$131.83). On the other hand, because the prices of other computer parts have dropped substantially over time, Windows has become a relatively more expensive part of the average PC. In 1998, for example, the typical desktop cost around US$1,100 (S$1,682.23), compared with US$650 (S$994.05) today, according to figures from NPD Group. Relative value The fact that other PC component prices have dropped more than Windows doesn't necessarily mean the operating system is a bad deal, NPD analyst Stephen Baker said. "While it does appear that the absolute cost of Windows has gone up over time, especially in contrast to the overall price of the PC and the other components, that rise certainly appears higher than it really is," Baker said. "Just like in hardware, we have to account for the increased value that the upgrades to the OS provide." Over the past decade, Windows has integrated the ability to burn music CDs, make movies, record TV shows and edit photos. Also, those abilities haven't come steadily over time, but rather arrived in a bunch with each new Windows release.
But not all of that value has been just given away by Microsoft. The software maker has introduced pricier editions of the consumer operating system, such as Windows XP Media Center Edition, Windows Vista Home Premium and Windows Vista Ultimate edition. So, while the price of the entry-level operating system has stayed the same, it costs more to get all of the bells and whistles. Michael Cherry, an analyst with Directions on Microsoft, pointed out that many people won't really get a sense of what they are paying for Vista, because it will come already installed when they buy their next PC. "It's really unknown what they pay for Vista," Cherry said. He noted that on build-to-order computer sites like Dell's, you can uncheck most components of a PC and see how much they add to the bill--but not always. "You can't just uncheck the operating system," Cherry said. (Dell does sell three machines without an operating system as part of its n-series, but adding Windows is not an option.) | ||||||||
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