Microsoft slashes Windows 8.1 license costs 70% to beat the competition

Microsoft is slashing the Windows 8.1 license fees to 70% for cheap laptops and tablets. Bloomberg reports the measure is to fend off cheaper rivals like Chromebooks. Microsoft is facing competition at the low-ed of the spectrum from Google’s often cheap Chromebooks and Apple’s iPads. Microsoft is lowering the license fee to $15 for installing Windows 8.1 on devices costing less than $250. The current licensing fee is at $50, with the 70% reduction in licensing fees Microsoft hopes that the Windows 8.1 will be enticing for the manufacturers to produce low-cost computers and tablets.

Bloomberg is citing anonymous sources, according to them the licensing cut will apply to any device be it a computer or tablet, the only criteria is it should cost less than $250.

Microsoft has sold so far 200 million licenses of the Windows 8, it said last month. This adoption rate is slower than the previous version of Windows that is Windows 7. This is largely due to the decline in PC business and competition from low cost computers and tablets. Microsoft recently started dishing Chromebooks on its commercials, because it is facing competition from those cheap Chromebooks.

Microsoft is expected to release Windows 8.1 this April, the significant change expected in this version is it boots directly to the desktop on non-touch enabled devices and on touch enabled devices it boots directly to start screen.

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