We are within 6 months of the release of two companies’ Operating System updates.  Microsoft will be releasing Windows 7 in October.  Apple will be releasing OS X version 10,6 aka. Snow Leopard in September.

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Here are good round-ups for each operating system describing their coming features:

What I find fascinating is the cost for each.  Microsoft has not committed to final pricing, but they are currently offering upgrades from Windows XP or Vista for $50 for their Home Premium version and $100 for their Professional version.  Apple has announced that Snow Leopard will only be $29 for current OS X users.

Why do you suppose that they have both dramatically reduced their prices simultaneously?  Microsoft down from $199 which was the price for Vista and Apple down from $129.

In Apple’s case they claim that since nearly all of the enhancements are "under the hood" and not customer visible, they only wanted to charge the minimum as the upgrade supposedly amounts to nothing more than a "better" version of Leopard, or OS 10.5.  That seems like a fishy explanation since even a casual review of the new product shows it will be a nearly completely new code base. 64 bit, Intel Mac compatible only, new Finder, the ability to employ unused graphics processor cycles for general use, etc.
Microsoft, on the other hand, tells you at every opportunity that Windows 7 will be completely different, better, more stable, more secure, and faster than Vista.  They say it is drastically new. so why the low price?

Personally, I believe that we are seeing the final realization that for most consumers their machines and operating systems already do everything that they want and need.  The marketplace will simply not pay a premium any longer for a "new" operating system or "upgrade" and that their market research shows that the only way to influence demand will be to lower prices.  IT is the old supply and demand curve in action.  In a way, it is sad, like watching a child grow up.  On the other hand, it is just another positive sign of the maturation of the Information Age and the saturation of the personal computer into every nook of our culture.

What do you think?  Should these companies charge more for their operating systems?  Are they still overpriced?  Does this indicate a maturation of the Information Age to you?  Please share.

That is my Information Technology Thought of the Day (ITTOD) for July 8, 2009 ©Scott Coughlin .

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