Acer Says Microsoft is Costing Them More Money

Jim Wong, senior corporate vice president at Acer, says Microsoft is costing his business more money, claiming that Microsoft is “ratcheting up the price of Windows” by effectively forcing consumers to buy the Premium version of Windows Vista.

Acer claims that the Vista Home Basic – the new entry-level Windows – is so poorly featured that consumers will simply reject it. “The new [Vista] experience you hear of, if you get Basic, you won’t feel it at all,” said Jim Wong, senior corporate vice president at Acer. “There’s no [Aero] graphics, no Media Center, no remote control.”

Wong claims that Microsoft’s own marketing machine has undermined Vista Home Basic. “Right at the beginning they started talking about the experience of [Vista Home] Premium. Premium is the real Vista,” he said.

Furthermore, Wong claims that the manufacturer’s licence for Vista Home Premium is 10% more expensive than for XP Home. “We have to pay more but users are not going to pay more,” Wong said. As a result, he claims the total cost of building a PC has risen by 1-2%, which is a significant increase in such a low-margin business. Source: PCPro

Some manufacturers have said they will not be shipping the Home Basic version because they don’t think there will be any demand.