Microsoft will cut Windows 8 license price by a big 70 percent for Personal Computer makers, Bloomberg News has reported. This price cut will be effective for low cost devices that retail for less than $250 price tag.
This step appears to be aimed towards the challenge being posed by Chromebooks and low cost tablets that are stealing away Windows market share. Microsoft previously charged $50 per Windows 8.1 license to PC makers but now for the low cost PC devices, this price has been reduced to $15.
In the past Microsoft had been thinking of making Windows RT and Windows Phone available without any price and this lowering of price of Windows 8.1 might well be the first step towards this possibility.
Microsoft has managed to sell about 200 million licenses of Windows 8 but this sale growth has been slower than its predecessor Windows 7.
Microsoft had previously followed this strategy of reducing Windows pricing when it faced challenge from Linux.