Windows XP is expected to go on sale in stores October 29, sources familiar with Microsoft's product plans have told us.
An October release is likely to be viewed as a mixed blessing to the PC industry, which has been battered by a severe sales slump.
Many PC makers are hoping the upgraded operating system can spark a surge in sales as consumers and businesses upgrade their PCs. If Windows XP is released in October, they can expect a sales boost for the crucial US holiday season but not for the back-to-school period, considered the second-busiest of the year.
Microsoft's delivery date for Windows XP has been a moving target in recent weeks, say sources close to computer manufacturers. A little more than two weeks ago, the software maker told some PC manufacturers that it would deliver final, or gold, code in June - in time for the late half of the back-to-school buying season. Gold masters are used to make copies of the operating system for new PCs.
One week ago, Microsoft revised the date, promising delivery of gold master copies by the first week of August. But, as first reported by CNET News.com, Microsoft also warned PC makers that if it missed that date, Windows XP's launch could be pushed back until next year.
As a result, it's possible that Microsoft - which has not publicly announced an expected release date - could again alter the timing for shipping the software.
Sources familiar with Microsoft's plans said in setting the October 29 retail release date, the company also pushed back the delivery of gold code again - for the third time in about a month.
Xbox concerns
While firming up its commitment to deliver the code in 2001, "Microsoft is pushing back as far as they can go in getting Windows XP out the door," said Guernsey Research analyst Chris LeTocq.
The problem: Windows XP's launch risks running into the unveiling of Microsoft's Xbox gaming console, which is slated for fall release. According to sources, Microsoft told PC makers last week that it didn't want to launch both products at the same time.
"This is about as late as Microsoft can go without running Windows XP marketing into marketing for Xbox," LeTocq said. Still, "It's going to be interesting see if the Xbox marketing will hurt Windows XP. If you're a gamer, and you see Xbox coming but you had been thinking about going with XP, you're going to have a choice to make."
NPD Intelect analyst Stephen Baker agreed that Microsoft can't let marketing for Windows XP and Xbox overlap.
"There is some question that even a company as big as Microsoft has the resources to do two launches - Windows XP and Xbox - like that all at once," he said. "You're talking about a lot of money and significant things you're trying to get done at the same time - even though it's coming from different (product) groups."
A Microsoft spokeswoman declined to comment on Windows XP's availability other than to say it would be in the second half of the year.
