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Windows 8 Marketing Campaign Likely to Hit $1.5 Billion

By - Source: Slashgear | B 58 comments

Microsoft has poured marketing dollars into Windows 8 for well over a year as the entire PC industry is depending on a decent launch.

It is imperative that the update for the core product will get off the ground smoothly, given the fact that Windows currently accounts for 26 percent of Microsoft's revenue and 42 percent of the company's operating income, not to mention the rather depressed mood among PC makers and the sales outlook for the remainder of the year.

There is now a rumor that Microsoft has allocated between $1.5 billion and $1.8 billion of marketing spending for Windows 8. There was no official source for this number, but it sounds reasonable in light of the significance of the product. Slashgear reminds us that Microsoft spent just $200 million on marketing 95 in 1994, which is about $310 million in today's dollars, but we also remember that the company sunk about $300 million in the launch campaign of its Zune player, and more than $500 million into Windows Mobile.

A Windows flop could prove catastrophic not just for Microsoft, but for PC vendors, hardware makers and software developers alike. Unless the success of the operating system is guaranteed, which is not the case at this time, it may be cheaper for Microsoft to spend a few billion now, rather than having to deal with the fallout of another Windows Vista.

 

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Top Comments
  • 20 Hide
    hrhuffnpuff , October 15, 2012 2:49 PM
    For $1.5 Billion, they could have fired the entire Metro UI division, and make more silly money.
Other Comments
  • -2 Hide
    nieur , October 15, 2012 2:46 PM
    I hope it succeeds in both markets PC and tablet/phone
  • 1 Hide
    wemakeourfuture , October 15, 2012 2:48 PM
    Are we getting another Rolling Stones song in the $1.5 Billion?
  • Display all 58 comments.
  • 20 Hide
    hrhuffnpuff , October 15, 2012 2:49 PM
    For $1.5 Billion, they could have fired the entire Metro UI division, and make more silly money.
  • 9 Hide
    aoneone , October 15, 2012 2:52 PM
    This will be the worst launch failure since Virtual Gameboy. Remember that!? Of course not, it went up in flames faster than Spontaneous Human Combustion. Bahahaahaa I crack myself up ^_^
  • 9 Hide
    diddo , October 15, 2012 2:52 PM
    The best marketing campaign is not insulting users with Metro Bob 2.0.
  • 0 Hide
    hrhuffnpuff , October 15, 2012 2:56 PM
    aoneoneThis will be the worst launch failure since Virtual Gameboy. Remember that!? Of course not, it went up in flames faster than Spontaneous Human Combustion. Bahahaahaa I crack myself up ^_^


    I actually had one, bought it at an AAFES store in Fort Hood,Tx.


  • -5 Hide
    fayzaan , October 15, 2012 2:58 PM
    nieurI hope it succeeds in both markets PC and tablet/phone

    I am confident it will. Start menu was inefficient and even MS said according to their statistics it was used very little. Who likes to go Start>Programs>Accessories>Paint.exe etc. no one does that anymore!! if you use a program often, you put it on the taskbar or a shortcut on the desktop. Windows 8 gives you that in a awesome way.
  • 4 Hide
    nebun , October 15, 2012 3:01 PM
    1.5 billion for what?....i am a little confused....such a waste of money
  • 5 Hide
    Kami3k , October 15, 2012 3:07 PM
    fayzaanI am confident it will. Start menu was inefficient and even MS said according to their statistics it was used very little. Who likes to go Start>Programs>Accessories>Paint.exe etc. no one does that anymore!! if you use a program often, you put it on the taskbar or a shortcut on the desktop. Windows 8 gives you that in a awesome way.


    Wow, sounds like a Microsoft employee defending his work on metro UI and hoping he doesn't get fired for it.
  • 1 Hide
    barter , October 15, 2012 3:07 PM
    would it be cheaper just to give all windows 7 users a free upgrade instead of spending 1.5 billion to charge us £20-25 quid to upgrade? (75 million upgrades)
  • 2 Hide
    wemakeourfuture , October 15, 2012 3:22 PM
    barterwould it be cheaper just to give all windows 7 users a free upgrade instead of spending 1.5 billion to charge us £20-25 quid to upgrade? (75 million upgrades)



    600 million windows 7 licenses, $40 per upgrade (digital copy, cheapest one), that's $24 Billion dollars
  • 0 Hide
    wemakeourfuture , October 15, 2012 3:24 PM
    wemakeourfuture600 million windows 7 licenses, $40 per upgrade (digital copy, cheapest one), that's $24 Billion dollars


    Also, I'm not including XP SP3 and Vista which are eligible, plus we know they won't get 100% of machine upgrading.

    As an MSFT investor, I don't mind them spending $1.5 billion on marketing the ROI is going to justify it.
  • 4 Hide
    ravinmachine , October 15, 2012 3:30 PM
    Spend a whole lot less than that and simply give people a "CHOICE" let them us the new GUI or let them use the old one.

    that way EVERYONE WINS!
  • 3 Hide
    nebun , October 15, 2012 3:31 PM
    fayzaanI am confident it will. Start menu was inefficient and even MS said according to their statistics it was used very little. Who likes to go Start>Programs>Accessories>Paint.exe etc. no one does that anymore!! if you use a program often, you put it on the taskbar or a shortcut on the desktop. Windows 8 gives you that in a awesome way.


    no it does not...i like the old fashion UI...it works and it's very simple...why confuse everyone and make it ugly at the same time?
  • 9 Hide
    jerm1027 , October 15, 2012 3:31 PM
    That 1.5 billion would have been much better spent with R&D (emphasis on research) and overhauling arguably one of the worst (desktop) UI's ever created.
  • -4 Hide
    kaisellgren , October 15, 2012 3:32 PM
    I just looked through my room's Window and saw 8 birds outside.
  • -4 Hide
    fayzaan , October 15, 2012 3:48 PM
    nebunno it does not...i like the old fashion UI...it works and it's very simple...why confuse everyone and make it ugly at the same time?


    Well then stay old! bwahahah, the rest of the world will be moving forward...after all that is how the tech industry works (it moves forward all the time). And seriously, how is it simple? I haven't used the start menu since like forever. I already explained my point before. So ist not simple, at least not as simple as it is in Windows 8.
  • 0 Hide
    bllue , October 15, 2012 3:51 PM
    W8 price doesn't seem too high (unless that's just pre-order price). $69-139 is pretty reasonable. If they want it to succeed they can't be selling W8 for $200 or 300 because then no one's going to want to upgrade from W7, which is already a pretty exceptional OS. The same goes for the Surface, if they sell it too expensive then barely anyone's going to want to buy it over the iPad or Kindles or whatever other Android Tablets out there. MS can tank a flop but why risk it? Why not price their products at a range most people won't mind spending? Give the Surface RT a $299 price tag and the Pro a $499 or even $599 and watch as they sell millions of these by the end of this year.
  • 1 Hide
    jojesa , October 15, 2012 3:55 PM
    Microsoft could have save more money just by giving it for free, to those who might want it.

  • 2 Hide
    Pennanen , October 15, 2012 4:40 PM
    I like to make my own desktop with rainmeter, dock programs and such.

    So no thanks to the whole metro ui thing.
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