Netbook Digest

Via DailyTech:

It’s common knowledge among the netbook community that Steve Balmer cringes every time someone buys a netbook running Windows instead of a full notebook or desktop running Windows.  Microsoft hacks down the price of their Windows OS in order to keep their netbooks competitive with the cheaper, free-er Linux option.  So, instead of compromising on the price point with Windows 7, the Starter Edition of the hotly anticipated new Operating System will be running on all of their netbooks.

This hamstrung version of the OS will only be able to run three programs simultaneously, and this is on purpose.  Microsoft’s banking on netbook purchases to pay to upgrade to the full version of their new operating system, a bold marketing strategy, especially when consumers can get a full-featured Linux netbook for the low low price of free.

This strategy hinges upon the fact that Windows 7 is going to live up to the hype and make up for the lackluster performance of Vista in previous years.  The full versioned Windows 7 is going to have to be very attractive for consumers to pay-to-upgrade instead of just installing Ubuntu, Xandros or EeeBuntu on their netbook.