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Windows 8 Pro to be priced at $199 following $69.99 promotional pricing

Microsoft's Windows 8 Pro software will be priced at $199 after a promotional price of $69.99 expires on January 31st 2013, according to one source familiar with Microsoft's plans.  The software maker will also offer …

The Verge Tom Warren

Context & Ripple Effects

Microsoft's upgrade economics for Windows 8 are now on the table: one source says the Pro edition lands at $199 once the confirmed $69.99 promotional upgrade — available through January 31st, 2013 — runs out. The story traveled widely for a pricing leak, with pickups at Computerworld, PC Magazine, ReadWriteWeb and others on the same day.

The pricing sits inside a deliberate Microsoft push: the company unveiled the Surface tablet in June 2012, marking its return to hardware, and is positioning touch-friendly Office 2013 alongside Windows 8. With nine years of antitrust sanctions behind it as of May 2011, Microsoft is free to tie software pricing tightly to its own device strategy.

First-order effects

  • Existing Windows users face a hard deadline: pay $69.99 before January 31st, 2013 or roughly triple that afterward, concentrating upgrades into a five-month window.
  • Microsoft converts hesitation about the touch-first interface into early adoption by making the upgrade cheap enough to buy on spec.

Second-order effects

  • A wave of discounted Pro upgrades puts more touch-capable Windows 8 machines in circulation ahead of Surface's launch, giving Microsoft's own hardware and OEM partners a larger addressable base.
  • PC makers heading into the holiday season get a low-friction path to move users off Windows XP and Windows 7 machines, supporting new-device sales rather than cannibalizing them.

Third-order effects

  • If the promo-then-list pattern holds, upgrade pricing becomes a recurring lever Microsoft pulls at each release cycle rather than a one-off discount.
  • The episode marks a shift in how Windows monetizes: lower headline upgrade prices traded for volume and ecosystem attach, with value pushed toward hardware and services like Office 365 instead of the boxed license.

The trend: Microsoft is using time-limited, aggressively low upgrade pricing to accelerate adoption of a touch-centric Windows across its newly hardware-inclusive, post-antitrust strategy.