The question is, will the average consumer like Lisa and Jackson or Lauren be interested in this strategy? Most consumers when they buy a computer, they tend to stick with whatever comes preloaded. If they pay $800 or $1500, they consider that a big investment, they are not interested in finding out 15 mins later or 1 month later, that to get a certain level of functionality, they have to spend more money.
I know folks who bought a PC or Laptop with XP Home and they are very happy with it. My brother bought a Dell Inspiron with Vista Home Basic back in March of 2008 and he is quite happy with it, regardless it lacks some of the eye popping functionality found in SKUs such as Home Premium and Ultimate. I told him about Windows 7, showed him and he says that looks cool. Is he interested in upgrading? Not really.
Now, taking into consideration Anytime Upgrade, which is actually even much easier to use in Windows 7 than Vista. Folks are not going really put up with a bait and switch tactic. I personally don't even know why Microsoft is continuing to sell a Starter Edition, noting that all Netbooks today can even run the Windows 7 Ultimate SKU just fine. If the Company wanted to present a cost effective solution, at least let it be Home Basic. But Starters 1024 by 768, 3 app limits are really going to annoy users. Will they migrate to Linux because of it? Maybe. Will they upgrade to a higher SKU? Maybe not. Like my brother, consumers will adopt, if the 3 app limit is what I bought into, so be it, but I am not going spend another dime, I have bills to pay, kids to feed.
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