In order to ensure that their high end or latest products such as Vista are not cannibalized by sales of the cheaper laptops such as eeePC , Microsoft has decided on limiting the capabilities of these cheaper machines. Microsoft plans to offer PC makers steep discounts on Windows XP Home Edition to encourage them to use that OS instead of Linux on ultra low-cost PCs (ULPCs).

To be eligible, however, the PC vendors that make ULPCs must limit screen sizes to 10.2 inches and hard drives to 80G bytes, and they cannot offer touch-screen PCs.

Not that people were falling head over heels to purchase Vista in any case but Microsoft just wishes to ensure that as and when the cheaper laptops pick up, it does not cut into their market share. Similarly by ensuring that Windows XP loaded machines are at the same price (or lower as we just saw) then Linux it also ensure that people do not make the transition to Linux.

Most ULPCs (Ultra low cost computers) successfully used Linux. Once users get comfortable with this OS, they have an effective alternate from Windows. Since ULPCs are mostly used by students , it would mean Microsofts future market share would be eroded by their success.

Microsoft wants the PC makers to have no more than 1G byte of RAM and a single-core processor running at no more than 1GHz.

PC makers may not like this but if one competitor offers a Windows based machine for a low price thanks to Microsofts help then the rest are forced to follow or else risk loosing market share.

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