October 22, 2009 could be one of the most important dates in Microsoft?s chequered history. There is much riding on the retail launch of Windows 7, and its success or failure will greatly impact the future of the world?s largest and most powerful software company.
While it still dominates the global operating system market with a 92% share, Microsoft is launching Windows 7 at a point in time when its OS business is the most vulnerable it has ever been. The gigantic, hopeless misadventure that was Windows Vista had hugely eroded its credibility, brand value and market confidence. And even though Microsoft managed to eventually fix most of Vista?s problems, it never quite got over the terrible press?users continued to believe that the OS was far worse than it actually is.
As a result of Vista?s failure, Microsoft?s competitors gained leverage. Apple used smart advertising and PR campaigns to gradually increase its market share to 5%. Several enterprises abandoned Windows in favour of Linux. But the biggest threat to Microsoft?s profitability in the OS business was never going to be from competitors, but from its own ageing Windows XP cannibalising Vista?s revenues. Annoyed with Vista?s poor performance, irritating features and general instability, most PC users simply refused to upgrade and stayed put with XP. Even OEMs, a major contributor to Microsoft?s OS sales, were hesitant to ship Vista with their hardware, favouring both XP?s better reputation and lower price.
Microsoft is now hoping that Windows 7 will solve two problems in one fell swoop?restore the faith of its customers, and rake in the profits by convincing them to give up XP and Vista and upgrade to the new OS. Luckily for them, the initial reports are encouraging.
Windows 7 has actually been in use for about a year already?in Beta, RC and RTM flavours. Testers, reviewers and end-users have been given the opportunity to take it out for a spin, and they?ve mostly been extremely positive in their reactions. This has created a great ?buzz? for Windows 7 ahead of the launch, which will go a long way towards removing Vista?s negative vibe (provided the product lives up to expectations).
Going by pre-release reviews, Windows 7 is lightweight, efficient, stable, speedy and (gasp!) even sexy. Its system requirements are rather reasonable?starting off with a 1 GHz processor and 1 GB of RAM as a basic requirement. Many reviewers have found a significant speed improvement over Vista?especially with startup and shutdown times. This alone should be enough for most users to ditch Vista and upgrade to Windows 7, but there are more reasons. The UI has been overhauled, and Windows 7 is easily the sexiest and sleekest Windows ever?desktop gadgets, fancy window effects and hugely improved design remake that makes Windows look like a modern, state of the art operating system, and not the Mac OS? ugly cousin. For the first time, Windows users get an operating system that actually works in their favour, and isn?t a butt of jokes from Mac fanboys. This could get pretty interesting. For the first time, poor, maligned, loyal Windows users can point to their snazzy, powerful new OS and smugly inform the competition that their OS can actually play real games.
Microsoft has managed to squeeze in out-of-the-box compatibility for an absolutely humongous range of hardware devices?ensuring that Windows 7 will work with almost any computer or accessory purchased in the last five years or so. This maximises the potential for mass adoption?even people with oldish XP boxes will be tempted to switch to the sleek new Windows 7, confident that it will run smoothly on their hardware.
However, it isn?t all rosy news. Pricing will be critical to the widespread adoption of Windows 7 in numbers large enough to make a difference to Microsoft, and as of now there?s no indication that Windows 7 will be priced low enough for any critical breakthrough. Microsoft?s website lists the full version of Windows 7 Home Premium at $199.99, and the Ultimate version at $319.99. Of course, there are discounted versions for people upgrading from Vista, but the price may well be a roadblock for early adoption. Of course, OEM pricing will also play a critical role ?OEMs currently get XP for about $15, and won?t be pleased if there?s a steep rise in what they have to shell out to Microsoft for the right to bundle Windows 7 with their hardware. Pricing is also crucial to Microsoft?s fight against its other great rival?piracy. A smartly priced OS could help convince millions of users, especially in emerging markets, to stop using pirated versions of Windows and switch to legit copies.
Microsoft has got the first part right?it has created a great product that people will want to use. Now, it needs to get pricing, marketing and support in place, and ensure that it wins this round?retaining existing customers, winning back lost ones, and gaining new ones.
However much of the official party line from Microsoft may harp on its ?underpromise and overdeliver? approach, the pre-launch talk has raised expectations for Windows 7, and another failure could spell doom for the company?s OS business. But if Windows 7 manages to succeed, it could herald a new era in Microsoft?s dominance of the market.
?The author is game designer and gaming journalist based in Mumbai