Microsoft placing hardware restrictions for XP

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Microsoft Limits Capabilities of Low Cost PCs

Microsoft will be offering steep discounts to PC manufactures that will use Windows XP in ultra low-cost desktops and notebooks. However, the discount comes with limitations, as Microsoft will be placing hardware restrictions for these manufacturers.

Microsoft’s goal is to limit hardware capabilities of upcoming generations of ULPCs so they do not reduce the demand for modern PCs with capable hardware. The limitations allow “PC makers to offer low-cost alternative, and it prevents eroding of pricing and margins in the mainstream OS market,” said analyst Roger Kay, EndPoint Technologies Associates president.

http://www.tomshardware.co.uk/microsoft-xp-windows,news-28224.html

If you can't compete, abuse monopoly position (yeah, I know that Microsoft doesn't technically have a monopoly, but the abuse from a large market share is not a binary thing, the higher market share you have the more you can abuse it.)

Well, they are mainly targeting machines that would usually come with a flavour of GNU/Linux or any other free (in this case free as in beer) operating system and that are not capable of running Vista.

I think next month was the original deadline after which Windows XP is no longer sold to OEMs, forcing them to ship all new machines with Vista instead.

So Microsoft is not abusing their strong market positiion, but they are rather trying not to lose a niche market to the competition.

They are hemorrhaging money in that market to linux & symbian. Both better designed, both faster, both lighter, both cheaper. I reckon they've already lost on that one, unless they can successfully spin the compatability card (although the other two are plenty compatable - for what most people would normally use a lightweight for, or a PC for that matter) :/

I would not call it "market abuse" though, as they are not trying to conquer an ajacent market via the windows platform (its still the OS market in which windows belongs, so it is fair play)

Although this bit stinks a little of their usual behaviour:
..Microsoft will be placing hardware restrictions for these manufacturers... Microsoft’s goal is to limit hardware capabilities of upcoming generations of ULPCs so they do not reduce the demand for modern PCs with capable hardware.
Lets face it though, PDA developers don't want an MS dictated capping on their devices power, any more than normal PC manufacturers do. Especially not when Linux or symb is proven more than capable of exceeding the capabilities of XP (and with no restrictions)

This could acually backfire on them.

if it was a non upgradable product fine
if it was just a cheap pc got from a supermarket (like mine) and you wanted to update the gfx card (like i do) and found it lacked the correct modern standard slot and just allowed for pci gfx cards that MIGHT be slightly better than the built in one then that would suck
or
you upgrade the gfx card or similar only to be told your version of XP dont like being messed with and it says "install vista to do that buddy" then again it is a bit of a stinker

if it was something competing with the likes of one laptop per child then xp is a bit too bloat anyways

Build your own PC. voila.

Build your own PC. voila.

Until Microsoft figures out that you simply make hardware parts refuse to work in other OS than Windows (yes, someone will hack it, which may be illegal etc).

Slightly related:
http://video.google.com/videoplay?docid=-5115609628556940516

Interesting video. It leaves the question also open if trusted computing is better than personal trusting. I'd say that in many cases standardized institutions make better choices for you than you can make yourself. They have years of collected experience and knowledge, and you have only a single person's experience of a very short time, unless you're an old fart.

I would say there is always only one right decision, and there are thousands of good enough decisions and millions of wrong decisions.