Microsoft made $1.5B on 'Vista Capable' campaign

Microsoft earned more than US$1.5 billion from the sale of PCs marked as "Vista Capable" in the months leading up to the 2007 debut of Windows Vista, according to an expert's estimate.

University of Washington economist Dr. Keith Leffler pegged Microsoft's income from sales of Windows XP licenses on Vista Capable-labeled computers at $1.505 billion. Leffler has testified for the plaintiffs in the ongoing class-action lawsuit that accuses Microsoft of deceiving consumers during its Vista Capable marketing program. The company created the program to maintain PC sales momentum as the launch of Vista neared.
In a heavily redacted document unsealed on Friday, Leffler outlined how he arrived at his estimate.

"In Microsoft's Supplemental Responses, it estimates that it received revenue of [redacted] from Windows XP licenses installed on upgradeable PCs sold in the U.S. during the April 2006 through January 2007 period," said Leffler, referring to the nine-month run of the Vista Capable campaign. "From the estimates of Windows [Vista] Capable but not Vista Premium Ready PCs compared to all upgradeable PCs as in Table 1, I estimate that [redacted] of the [redacted] from Windows XP licenses on upgradeable PCs were for XP licenses on Vista Capable but not Vista Premium Ready PCs -- those PCs purchased by the Plaintiff class.

"From these figures, I have, therefore, reached the opinion that the Microsoft revenue from the Windows XP licensing on Vista Capable but not Vista Premium Ready PCs sold to Plaintiffs was $1.505 billion," Leffler concluded.

The "Vista Premium Ready" program was a separate marketing campaign that Microsoft promoted with stickers affixed to PCs able to run all versions of Vista, including the pricier and more feature-packed Vista Home Premium and Vista Ultimate editions.

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