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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Microsoft to offer Vista enticements

Associated Press The Spokesman-Review

SEATTLE — People who buy certain Windows personal computers this holiday season will be offered free or heavily discounted coupons to upgrade to Microsoft Corp.’s new operating system, Windows Vista, under a program designed to spur sales despite Vista’s delay, Microsoft said Tuesday.

Vista is currently scheduled to be released to consumers sometime in January, after numerous delays that forced the Redmond software maker to push the launch date beyond the holiday season. It’s also scheduled to be released to big business clients in November, although exact launch dates for both versions haven’t been made public.

The coupon program begins Thursday and runs through mid-March. Particulars of the deal will vary depending on the computer maker and retailer.

Among the plans by larger computer manufacturers:

“Hewlett-Packard Co. spokeswoman Tiffany Smith said people who buy certain HP Pavilion, Compaq Presario and HP Digital Entertainment Center computers equipped with Windows XP, Microsoft’s current version, can upgrade to Vista for free. There may be shipping and handling fees, depending on the retailer.

“Gateway Inc. will offer free upgrades for people who buy Vista-capable computers directly from the company. Gateway spokeswoman Kelly Odle said shipping charges or duplication fees may be charged people who buy Gateway computers through other retailers.

“Dell Inc. spokesman Bob Kaufman said buyers of Vista-capable Dell computers running Windows XP Home Edition will be able to buy Windows Vista Home Basic at the discounted price of $45, plus shipping and handling charges. Buyers of computers running Windows XP Media Center or Windows XP Professional will only have to pay shipping and handling to get a comparable Vista version, he said.

Mike Sievert, corporate vice president for Windows marketing at Microsoft, wouldn’t disclose the financial terms reached with the computer makers. Analyst Charles Di Bona with Bernstein & Co. said he didn’t expect Microsoft’s financial results to take a hit as a result of the promotion, although he said the process of accounting for the licenses may mean that revenue from those computer sales is recorded over a longer period of time.

The cost to upgrade or buy a new version of Vista at full retail price will range from $99.95 to $399, depending on version.

Microsoft said it also is backing a similar program for people who buy computers that come pre-loaded with the current version of its business software, Office 2003, and want to upgrade.