Microsoft Reveals Windows 8 OEM Licensing Prices

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Supply chain sources have spilled the goods on licensing fees for Windows 8 Pro and Windows RT.

Unnamed Taiwan-based notebook supply chain makers are reporting that Microsoft has released the licensing rates for Windows 8. For each x86-based machine, OEMs will have to shell out $80 to $100 USD for using both Windows 8 Pro and Office 2013. For devices packing an ARM-based chip, OEMs will be required to pay between $50 and $65 USD for using Windows RT and Office 13 on each device.

Supply chain sources are reportedly placing high hopes on the success of Windows 8, naturally wanting to see the new operating system resurrect consumer demand for the traditional notebook. Yet because it's a complete overhaul of the popular platform -- evolving much like it did when moving from Windows 3.11 to Windows 95 -- most notebook players are taking a conservative attitude about the upcoming launch.

Currently Windows 8 isn't expected to help significantly boost PC demand before 2013. That's because the new operating system requires components with additional functions over the traditional notebook -- such as touchscreens -- in order for the platform to work as Microsoft intended. Throw the licensing fee on top of that, and the final consumer price will be projected to a "rather unfriendly level."

But sources expect the demand for Windows 8 products to increase around the middle of 2Q13. By then the notebook supply chain will have shifted production to touchscreen-based models and the manufacturing costs will have dropped. As seen with the Ultrabook sector, first generation devices may initially carry a hefty pricetag, but prices will eventually drop as component prices and manufacturing costs diminish.

Earlier this week Microsoft confirmed that Windows 8 will arrive on the market by the end of October. The RTM version is expected to be released in the first week of August for testing. Earlier reports indicated Microsoft would charge at least $85 per device in licensing fees for Windows RT, but it's possible Microsoft lowered the price so that market prices for ARM-based Windows products don't surpass Apple's iPad pricing.

Kevin Parrish
49 Comments Comment from the forums
  • CaedenV
    ... Win8 Pro AND Office? not a bad deal at all considering most products pack Home without office.
    Reply
  • bourgeoisdude
    "Earlier reports indicated Microsoft would charge at least $85 per device in licensing fees for Windows RT, but it's possible Microsoft lowered the price so that market prices for ARM-based Windows products don't surpass Apple's iPad pricing."

    Or the earlier reports were simply wrong, it would make absolutely no sense at all to raise prices for OEM licensing with this version of windows with so much market share at stake.
    Reply
  • DRosencraft
    Pricing doesn't seem terrible for any OEM looking to bundle both Win8 and Office '13, considering what the retail price would likely be getting them separate.
    Reply
  • Osmin
    Windows 8 definitely needs a touch screen to succeed. The Metro interface with a mouse or touch pad is cumbersome to use. Until my ultra book or desktop gets a touch screen, its either Windows 7 or Mountain Lion on all my computers. Don’t force feed Metro down my throat until I am ready.
    Reply
  • festerovic
    They are going to have to give it away to get it to be a success. The smell of doom is in the air.
    Reply
  • dimar
    My screen doesn't like it when I touch it :-)
    Reply
  • waethorn
    bourgeoisdude"Earlier reports indicated Microsoft would charge at least $85 per device in licensing fees for Windows RT, but it's possible Microsoft lowered the price so that market prices for ARM-based Windows products don't surpass Apple's iPad pricing."Or the earlier reports were simply wrong, it would make absolutely no sense at all to raise prices for OEM licensing with this version of windows with so much market share at stake.

    You have to read one thing to know this isn't official, if you didn't already remember the false Window RT pricing quote from before that all the bloggers followed: "Unnamed Taiwan-based notebook supply chain makers are reporting".

    Ya, so I'm an unnamed Chinese ODM and I say that Microsoft is charging 4 gold shillings and a parrot for Windows 8.

    See how that works?

    In any case, what Microsoft charges OEM's is NOT what you're going to be able to buy System Builder software for. System Builder software is sold through distribution. Big OEM's buy directly from Microsoft, and they DON'T get individual media kits, COA's or documentation like you get from distribution. Those OEM's have to print their own COA's and issue their own recovery mechanism, be it a partition or DVD, so they get the licenses for a lower cost. They also have minimum order purchase commitments which standard distributors do not. Distributors don't have system builder SKU's yet, so take all of this with a grain of salt. Microsoft has never historically issued pricing for system builder SKU's before RTM either.
    Reply
  • blazorthon
    OsminWindows 8 definitely needs a touch screen to succeed. The Metro interface with a mouse or touch pad is cumbersome to use. Until my ultra book or desktop gets a touch screen, its either Windows 7 or Mountain Lion on all my computers. Don’t force feed Metro down my throat until I am ready.
    If you don't like Metro, then don't use it. Windows 8 doesn't mean that you must extensively use Metro. There is a desktop shell and a start menu is easy, quick, and free to install. ViStart/ViOrb or Classic shell and you're good to go. Yes, they work with the latest version of Windows 8 and will work with the RTM version too.
    Reply
  • sabarjp
    All I read was that OEMS, instead of finally shipping laptop screens with non-crap displays, will be adding worthless touch instead.

    I swear it feels like the resolution of laptop screens is getting worse with time.
    Reply
  • super d spamalot
    OsminWindows 8 definitely needs a touch screen to succeed. The Metro interface with a mouse or touch pad is cumbersome to use. Until my ultra book or desktop gets a touch screen, its either Windows 7 or Mountain Lion on all my computers. Don’t force feed Metro down my throat until I am ready.
    No, it doesn't. Unless you're saying that using the mouse wheel to scroll and the left button to click on things is "Cumbersome", in which case you must hate every GUI in existance. Windows 7 -> Winkey, mouseover, click. Windows 8 -> Winkey, scroll wheel, click. Doesn't seem like a radical departure to me...

    And nobody is forcing you to use anything, stop being so overly melodramatic just because you don't want to admit that you're too inept to adapt quickly to a new UI. As I've said here before, give it 2 years and you and all the other haters will be saying it's the best Windows yet, just like the bandwagon hated XP because it was too different from '98.
    Reply