Microsoft's flagship Windows product has been costing the company money – something it plans to change when it settles on pricing for the new Windows 7 operating system. And emerging markets will probably be hardest hit.
CEO Steve Ballmer told an analysts meeting yesterday that Windows pricing has cost the company 4% this year, a situation the software giant plans to remedy when Windows 7 debuts in October.
Ballmer blames much of the loss on the fact that Microsoft cut its prices in emerging markets, mainly to counter piracy and increase revenue.
"The theory was wrong," he says. "And you will see us address the theory in the Windows 7 time frame. We're going to readjust those prices north, so to say.
"I think with our Windows 7 SKU lineup, we also have a great chance to do some up-sell."