Microsoft hosted a celebration on Friday marking the release of Windows XP to PC manufacturers, but the big question is whether the public will take to the software.
At a lavish ceremony at the company's Redmond, Wash., headquarters, Microsoft Chairman Bill Gates and Jim Ahin, group vice president and head of the Windows effort, are expected to present each PC maker representative with a Windows XP-branded briefcase containing a master disc with the operating system's final--or gold--code. The group then is supposed to board a helicopter and fly off while the two Microsoft executives wave.
Software companies typically stage such events at the time the software is available at retailers. In the case of Windows XP, that date is still two months away.
As a result, Friday's celebration with manufacturers could be intended to send two messages: Microsoft is determined to push ahead with XP despite concerns by some competitors, lawmakers and privacy advocates. And PC makers hope Windows XP will spur sales of new PCs.
Microsoft on Friday also announced pricing for Windows XP. Windows XP Home Edition will cost AU$462 for the full version, and AU$238 for an upgrade version. Windows XP Professional will sell for AU$675 for the full version and AU$462 for the upgrade edition.
"Windows XP is the most important consumer product they've released since Windows 95, with maybe the exception of Internet Explorer," said Matt Rosoff, an analyst with Directions on Microsoft. "They're counting on it to drive a huge jump in revenue between the third quarter of the calendar year and the fourth quarter of the calendar year: between a 15 and 30 percent increase between the two quarters."
The ceremony also represents an early piece of a US$1 billion industry wide marketing blitz--including at least US$200 million from Microsoft--to promote Windows XP. The campaign, though, comes at a time when consumers seem numb to PC buying, and it's unclear if a new operating system will be enough to change their minds.
Sales are on the decline in 2001. Moreover, Microsoft faces a challenge in getting the world excited about an OS release. Compared with the upgrade whirlwind that followed Windows 95, the last three Windows OSes have been greeted with tepid applause. Consumers have bought Windows 98, Me and 2000 but generally have not seen the new OSes as a strong reason to upgrade.
So far, Windows XP beta testers have offered mixed reviews of the operating system, giving some indication of how consumers and businesses may perceive it.
"Overall, I'd say that Windows XP is worth the upgrade for someone who depends on Windows," said Scott Newberry, a tester from Edgewood, Ky. "I've been running Windows XP on my laptop since (Release Candidate 1), with no crashes to date. I can't say that for Windows 2000."
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