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Microsoft: Windows 7 Won't Save PC Recession

By - Source: Tom's Hardware US | B 32 comments

Windows 7 may be good, but it's not a miracle.

Despite Apple trying to rain on Microsoft’s parade during WWDC09, pointing out that Windows 7 is still built off of Vista roots, many are looking to the upcoming Windows release to be the one that gets it right, giving the sagging PC industry a much-needed shot in the arm. But Microsoft is cautious when it comes to suggestions that Windows 7 will be able to single-handedly turn around the recession in PC buying.

“History would tell us that generally as you ship a Windows release into the market... the bump is very modest," Microsoft senior vice president Bill Veghte said in a CNet story. "You will see a little bit, but it is modest."

While consumers are eagerly awaiting Windows 7--which is timed well with the holiday buying season--businesses aren’t so ready to spend IT dollars in upgrades. Microsoft doesn’t seem that worried, however, staying confident that the dollars will roll back in once the economy improves.

"It will get drowned by the macroeconomic environment," he said in the speech, which was Webcast on Microsoft's investor Web site. "As the macro environment comes back, people will have to buy new PCs. People aren't using PCs any less."

Dell hopes that Windows 7 will have a significant boosting effect on PC buying, as the computer-making giant saw its quarterly earnings fall by 63 percent. Michael Dell said that the company is preparing itself for a “powerful replacement cycle,” which could be referring to Windows 7 and new CPUs based off of Nehalem.

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  • 10 Hide
    jacobdrj , June 10, 2009 7:08 PM
    It won't, but it will go a long way in restoring trust in the industry.
Other Comments
  • 10 Hide
    jacobdrj , June 10, 2009 7:08 PM
    It won't, but it will go a long way in restoring trust in the industry.
  • 2 Hide
    CR0W M@GN3T , June 10, 2009 7:09 PM
    Well with America in recession I doubt anybody is going to strain their budget by upgrading to Windows 7. I am currently using the release candidate and like the improvements on Vista but there isn't anything amazing that would justify an upgrade for me. Of course if Microsoft offers a low price for upgrading to Vista I might consider it. As for Dell and the other suffering tech companies, I don't think people adopting Windows 7 right away is a problem. They should just hope that people are willing to upgrade at all.
  • -2 Hide
    grieve , June 10, 2009 7:21 PM
    jacobdrjIt won't, but it will go a long way in restoring trust in the industry.

    What trust was/is lost? If you are refering to Vista... I love it.


    cr0w m@gn3tWell with America in recession I doubt anybody is going to strain their budget by upgrading to Windows 7.

    I live in Canada; some industries here also feel the heat of your recession... USA is only one Country that sales will be considerably lower due to "recession". Windows sells worldwide!

    I know i will be buying Win7 March 2010 when my RC begins to expire.
  • 2 Hide
    jerther , June 10, 2009 7:24 PM
    @crow magnet

    If I recall, there has been an article about upgrade prices recently. Best buy talked about free, and I've seen 49$ somewhere. I think it's worth it.
  • 1 Hide
    rockabye , June 10, 2009 7:29 PM
    I'll consider upgrading when games require it. Until then I can't be bothered.
  • 2 Hide
    NocturnalOne , June 10, 2009 7:42 PM
    The point was that some people expect *PC* sales to rebound after W7 is released. This has little to do with people upgrading their existing systems from Vista to W7. Dell couldn't care less about that. They are hoping that boat loads of 'old' boxes with P4s and XP will finally be replaced with Nehalem i5 and i7 W7 boxes.

    MS is smart to downplay expectations.

    I just got a nice i7 kit with Vista 64b. Once W7 has proven stable (ie. the fanboy gloss has worn off) and SP1 has been out a while I might update. If Vista turns out to be miserable maybe I'll upgrade earlier. At $80 (i7-920 + Vista gets a $20 discount at newegg) for Vista it's dirt cheap so why worry about an upgrade even half a year from now?
  • -3 Hide
    cadder , June 10, 2009 7:52 PM
    Lots of people have bashed Vista, then Apple picked up on it and blew it all out of proportion. Right or wrong, the popular feeling is that Vista is flawed. Microsoft needs to take this seriously and make darned sure that 7 doesn't give the enemy any opportunity to criticize it. I've read on forums where there are lots of problems with 7, problems installing, etc. I don't know how serious this really is but I have yet to be able to download the "free" 7 RC1 from Microsoft's site. They need to fix this and then follow through with it into the release of the software.
  • -9 Hide
    maximiza , June 10, 2009 7:57 PM
    Vista forever!!!
  • 3 Hide
    kccboy2004 , June 10, 2009 8:29 PM
    maximizaVista forever!!!


    Wow, @cadder. You really don't know what you are talking about. What problems with 7, what download problems ? Name one !!!
  • 1 Hide
    Gedoe_ , June 10, 2009 8:35 PM
    if dell is prepairing for a powerfull replacement cycle, while empirical evidence is against them.. they suck
  • 1 Hide
    thearm , June 10, 2009 8:42 PM
    I just saw a story on Digg on how the recession hasen't effected the PC industry. Not that any stories by reporters are to be taken as true. But I did see it.
  • 0 Hide
    falchard , June 10, 2009 8:53 PM
    I think they are judging their economics poorly. Sales are down for Microsoft because no one is going to purchase Windows between now and October. They themselves have decreased their own sales by overhyping and making a good Operating System.
  • 0 Hide
    NocturnalOne , June 10, 2009 8:54 PM
    thearmI just saw a story on Digg on how the recession hasen't effected the PC industry. Not that any stories by reporters are to be taken as true. But I did see it.


    Companies love buying Dell by the truckload. Just because you (nor I) wouldn't buy a Dell for at home doesn't mean they suck. Despite what you may think the majority of PC buyers don't put them together from a few boxes of carefully researched parts. They buy whatever they can afford and looks good at whatever store they shop.

    As an aside, I have a nearly 4 year old XPS sitting downstairs (company computer) and it's been super reliable and quiet. If I wasn't such a picky b@st@rd in that I want to put together my own system of my own choosing I would be tempted to get a Dell of my own. I've had quite a few company owned Dells over the years and they've all been fine. Oh, I have another Dell that has sat *outside* under a tarp next to my telescope for over a year. Temperatures ranging from 100+F to 0F. Still keeps on ticking (XP Pro with a P4@2.8G).
  • 1 Hide
    megamanx00 , June 10, 2009 9:15 PM
    Just as long as it's an improvement over current Vista I think it will be fine. Vista wasn't too fun at launch I'll tell ya what. Still, it's more decent now that they've gotten alot of the bugs out. I just hope Win 7 doesn't bring in a whole mess of new ones.
  • 2 Hide
    Wayoffbase , June 10, 2009 9:19 PM
    grieveWhat trust was/is lost? If you are refering to Vista... I love it.


    For those of us that actually used it, and found it to be a better all around experience than XP, but you have to admit the popular press has been extremely harsh. "Cool people" hate vista :p 
  • -4 Hide
    cadder , June 10, 2009 9:31 PM
    Quote:
    Wow, @cadder. You really don't know what you are talking about. What problems with 7, what download problems ? Name one !!!


    I've been to the MS download site numerous times. Hit the download button, then it wants you to log into microsoft? I don't have an account with microsoft, I guess you guys do? Note that this was not required to download the W7 beta, but is a new requirement for the W7 RC. MS needs lots of customers to buy W7, how many of those potential customers have accounts with MS?
  • 0 Hide
    gorehound , June 10, 2009 9:52 PM
    i will upgrade at this point when i have to.all my games and apps are working just fine on xpsp3 so why fix something that is not broke.
    eventually there will come a time in the next 3 years where i will upgrade my OS.
  • 1 Hide
    chaohsiangchen , June 10, 2009 10:10 PM
    WayoffbaseFor those of us that actually used it, and found it to be a better all around experience than XP, but you have to admit the popular press has been extremely harsh. "Cool people" hate vista


    A lot of people in the press use Macs for editing and production for years. Those people have natural tendency to bash any Windows release and praise OSX, just like their tendency to do the same in other field. Frankly I don't believe anything from the press without fact check myself.
  • 1 Hide
    Maxor127 , June 10, 2009 10:30 PM
    Eh, when Vista came out everyone said it was amazing and I installed it for DX10. It was ok, but there were a lot of missteps. I still don't think it's as bad as 90% of people make it out to be. Games need a lot more memory, though, which makes me think Vista's supposed superior memory management is a bunch of BS. I don't really regret using it except for rare times when I play a game with EAX that isn't supported by ALchemy.

    I have a feeling Windows 7 will be more of the same. Everyone saying how awesome it is, and then the inevitable backlash. It happened with XP too and all other previous releases. I'll be skipping Win7 unless I build a new computer or can find it for really cheap somewhere.
  • 1 Hide
    kingnoobe , June 10, 2009 10:55 PM
    They were also saying how crappy vista was in beta.. And that microsoft just didn't listen to them..

    Vista isn't bad now, but that doesn't matter.. First impressions tend to stick. Win 7 run just fine on both my computers.. While I'm sure my main one now would've have to much of a differnce, my old tells the tale easily enough between vista and 7. *Or the last time I used vista I should say*.
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