Microsoft: Windows 7 Won't Save PC Recession

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.