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Windows XP marketing tab to hit US$1b

By Joe Wilcox, CNET News.com, CNET US on June 27, 2001

Summary

The software giant says that together with Intel, PC makers and retailers, it will spend US$1 billion promoting Windows XP, its upcoming operating system.

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Microsoft said Tuesday that it, together with Intel, PC makers and retailers, will spend US$1 billion promoting Windows XP, the software giant's upcoming operating system.

Microsoft and Intel alone will spend US$500 million to market Windows XP, which is slated for an October 25 launch, with PC makers and retailers spending another US$500 million. In May, Jim Allchin, Microsoft group vice president, said the company would spend "hundreds of millions of dollars" promoting Windows XP.

Microsoft will spend a combined total of more than US$700 million on marketing to launch Windows XP and the Xbox video game console this fall, according to estimates from the company and Merrill Lynch. Xbox is set to debut November 8.

Microsoft finalized Windows XP marketing plans on Tuesday during a Las Vegas meeting with 600 partners, including PC makers and retailers.

The news comes as Microsoft reaches the final stages of Windows XP product development. The company last week released what is expected to be the last test version of Windows XP before releasing a highly anticipated preview release. Sources close to the company said the preview code could be released to manufacturing as early as Friday, but possibly as late as July 4.

Microsoft is expected to deliver a completed version of Windows XP to PC makers by the end of August, according to sources close to hardware manufacturers.

Last week, Microsoft unveiled the "Windows XP Ready PCs" program, working with computer manufacturers to deliver hardware that fully supports the new operating system.

In preparation for the launch of Windows XP, major PC makers have been offering coupons for Windows XP upgrades for PCs bought after June 1. Gateway's Windows XP upgrade, for example, costs US$15 with its coupon, while Dell Computer charges US$39.

Windows XP is Microsoft's most ambitious consumer and business desktop operating system since the release of Windows 95 about six years ago. The new version sheds the last ties to DOS and Windows 3.11, as XP is based on Windows 2000, the version of the operating system originally created for business consumers. Because of its heritage, Windows XP is expected to be more stable than Windows 95, 98 or Me and offer better memory management and multitasking--the ability to run many programs at the same time.

Windows XP will be available in two versions: Home and Professional. While the basic features are expected to be similar, the business version will have more robust networking and security features, said Shawn Sanford, Windows group product manager.

New features include: a new Windows Media Player, which will not be available separately; Windows Messenger, a communications console featuring instant messaging, videoconferencing, telephony and application sharing; an Internet firewall; a file migration utility for transferring settings and programs from older PCs; multiple user log-in; and Windows Movie Maker, among others. Support for Bluetooth wireless technology and USB 2.0 is not yet available but is expected to be soon after Windows XP ships.

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