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A reality check for Vista

Saturday, September 9th, 2006

Judging by the grief that Microsoft is getting over delays in the release of Windows Vista, and the Windows Vista 10.jpgbuzz surrounding the price it plans to charge for the next generation operating system, you’d think we were all hankering to get our hands on this hot new piece of software.

Don’t believe the hype: There won’t be lines around the block at midnight when Vista hits store shelves early next year, analysts say.

"I don’t expect anyone’s going to be camping out at Best Buy waiting for this product," says Citigroup equity research analyst Brent Thill. I think the pace of adoption will be slower than the market expects."

Microsoft gets more than 80 percent of its $13 billion in annual Windows revenue from PC makers, who install the operating system on new PCs. The cost of Windows - estimated at around $70 - is included in the price we pay when we buy a new PC. The proportion of people who buy copies of Windows at retail to install on their PCs is vanishingly small. Working Tech: A reality check for Vista - Sep. 8, 2006

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