Chromebooks are excellent low-cost notebooks and it is not surprising that they’re now some of the most best selling devices of their kind. To counter the onslaught from Chrome OS powered Notebooks Microsoft announced its Windows with Bing program which basically allowed OEMs to license the company’s Windows operating system for free on low-cost computers. This allowed OEMs to further drive down price and compete with Chromebooks. It looks like the response has been far better than Microsoft expected.
According to a report Microsoft is now limiting the Windows with Bing program. OEMs will only be able to license the operating system for free only for notebooks that have screens under 14-inches. The change will reportedly come into effect starting next month.
The Register’s report cites “senior sources at PC makers,” and also claims that Microsoft is making this move because majority of the Windows with Bing notebooks that were sold had 15-inch screens.
It does make sense for the company to place this restriction, after all, licensing Windows is one of the biggest revenue generators for Microsoft and it wouldn’t want free licensing that’s meant to keep Chromebooks at bay to cut into that.
OEMs still have to pay licensing fees for their high-end notebooks. Sure, this decision will decrease their margins, but looks like that’s a compromise that Microsoft is willing to make.
Filed in . Read more about Chromebooks, Microsoft and Windows.