In April, Microsoft made Windows XP available to manufacturers of what it calls ULCPCs (ultra low cost PCs) such as the Asus Eee subnotebook PC rather than see this market go to free Linux. Now it is extending the offer to ultra low cost desktop PCs, which it is calling "nettops" -- an Intel designation for simplified PCs that cost $100 to $299 and are based on the Diamondville version of its Atom processor. Microsoft says:
"Customers and partners have made it clear to us that they want Windows on their netbooks and nettops," said Steven Guggenheimer, corporate vice president of the Original Equipment Manufacturer Division at Microsoft. "We are committed to providing Windows solutions for these devices, helping to ensure a high-quality experience for both our partners and customers."
There's a supporting quote from Asus:
"We have seen much demand for Windows on the Eee PC," said Jerry Sheen, CEO of ASUSTek Computer. "It is great that Microsoft is addressing this customer demand and providing a Windows solution on these devices, which will provide a familiar computing experience."
The idea that these machines are only for students or third world buyers also seems to have gone, with the big three -- Dell, HP and Acer -- in the list of hardware backers. It says:
Microsoft is working with more than 20 original equipment manufacturers (OEMs) including Acer Inc., ASUSTek Computer Inc., BenQ Corp., Dell Inc., First International Computer Inc., Gigabyte Technology Co. Ltd., HP, Inventec Corp., Lenovo, Medion AG, Micro-Star International Co., Positivo Informatica, Pegatron Corp., Quanta Computer Inc. and Wistron Corp. to deliver Windows-based offerings for consumers.
The Microsoft press release amusingly fails to mention Windows XP, but Microsoft doesn't have a low-end version of Vista, so we know it's not offering that.
It was a no-brainer to extend the life of XP for low cost netbooks, because most of these are incremental sales: the buyers either couldn't afford a full-spec machine or else they're picking up an Asus as a second or third machine. XP on nettops could be a different issue, because they could well be substitutes for more profitable Vista sales.
Still, the Intel Atom bandwagon is finally about to roll, and it's the only one to promise a dramatically increasing PC sales market. Intel's slideware is projecting sales of more than 100 million netbooks and nettops per year by 2011. None of the majors can afford to miss out on that sort of boom, if it happens. Except, possibly, Apple.
