Unsurprisingly netbooks are hurting Microsoft.
Allegedly Windows 7 will run pretty well on netbooks. I'm totally ignorant of the details here, but this surprises me. I always assumed that at least some of the reason that Vista appeared so clunky was that more of Windows had moved to Managed Code in a sandboxed virtual machine. Does the performance improvement mean that Windows 7 moves some things out of that? Or have they found a way to make it more efficient?
Whatever the facts of that, it's clear that M$ are cutting the price to compete with free Linux on netbooks. And that's a loss that isn't going to be recovered if (as I predict) the O/S for netbooks remains a commodity. (As in, they won't be able to make Windows an essential as opposed to more-familiar-and-therefore-preferred option.)
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