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Windows 8.1 shares highlights in video walkthrough

Windows 8.1 is a big deal for Microsoft, the first significant update for the OS, and the opportunity to address some of the lingering user frustrations: not just add in the Start button.  The company has shared a new video …

SlashGear Chris Davies

Context & Ripple Effects

Microsoft is using Windows 8.1 as its first major opportunity to answer frustrations surrounding Windows 8, which had been assessed in a 2012 Windows 8 review. The walkthrough turns the update into a public product message rather than a feature list alone.

The update sits alongside a broader tablet push: Microsoft has set upgrade terms for existing Windows 8 and Windows RT users, promised Outlook 2013 for Windows RT through the free update, and said future 7- and 8-inch Windows 8 tablets will include Office Home and Student 2013 at no extra charge.

First-order effects

  • Existing Windows 8 and Windows RT users gain a defined upgrade path, while Windows RT tablet users are slated to receive Outlook 2013 through the free Windows 8.1 update later in 2013.
  • Microsoft gives small Windows-tablet makers a more saleable package through expanded software discounts and included Office on future 7- and 8-inch devices.

Second-order effects

  • Tablet makers can compete more directly on a bundled productivity proposition, shifting part of their pitch from hardware specifications to Windows, Office and Outlook availability.
  • Microsoft absorbs more of the software economics to encourage Windows tablet adoption, putting pressure on its licensing revenue per low-cost device.

Third-order effects

  • If Microsoft continues pairing interface revisions with discounted licensing and bundled applications, the small-tablet market will reward operating-system vendors that can subsidize hardware partners with a broader software stack.

The trend: Windows is being repositioned for smaller touch devices through a combined strategy of usability revisions, free upgrades and productivity-software bundling.