MICROSOFT TO SET HARDWARE CURBS ON WINDOWS 7

Financial Chronicle

Microsoft, the world’s largest software company, will place hardware curbs on computers using basic versions of its Windows 7 operating system, possibly luring users to buy more expensive, full-featured notebooks.

Computer makers will need to meet Microsoft’s hardware requirements to use Windows 7 Starter and Value Starter software under special prices, Steven Guggenheimer head of the Redmond, Washington-based company’s OEM division said in an interview in Taipei on Wednesday. He declined to specify the limits.

Microsoft will release Windows 7 on October 22 as it looks to reverse three quarters of declines in revenue from computer operating systems prompted by the popularity of low-cost netbooks.

The company, at present restricts the screen and storage size of laptops using its Windows XP system, which is cheaper than Windows Vista, preventing it from being used on larger, more-powerful computers.

Offering less-expensive versions of Windows 7 may allow it to compete with Google’s free Android operating system, which will be loaded onto computers from next quarter. Will it physically run? Yes, Guggenheimer said. The licensing terms are different including pricing, he said.

Windows 7 will be offered in six versions, called Stock Keeping Units, or SKUs, with the remaining editions of the software facing no hardware restrictions, he said.

The Starter won’t be able to play DVDs, use more than one monitor or change desktop backgrounds.

Value Starter will only be available in emerging markets, he said.