Microsoft knows very well that the PC users are not very keen on upgrading to Windows 8, given the criticism Metro has been receiving from various ends. To make sure Windows 8 does not bomb on launch, the Redmond giant has slashed down the price of Windows 8 Pro upgrade to an all time low of 39.99$ for the digital download. This is magnitudes lower than the price for Windows 7 professional license of 299$ when it was launched in 2009.
Also worth noting is that Microsoft will not be probably shipping clean install mediums anymore for end users and it will be exclusive to OEM’s called as OEM Builder Kit.
Just as expected though, Microsoft intends to compensate for the lower initial cost of Windows 8 by generating revenue from the new Windows Store. Microsoft earlier revealed its plans for monetization of Metro apps in a detailed post on its building windows, which gives plenty of flexibility for the developers while giving consumers more choice.
Revenue Models
Microsoft, following the route of Play store and iTunes has given several models of monetization of metro apps. The revenue model is somewhat similar to its existing model for Windows Phone market place.
- Trials convertible to full version within the app
- In app purchases
- Advertising within the app
- Billing through developers own existing mechanisms
Interesting Highlights
Metro Apps are Going to be Expensive
We were particularly disappointed by the pricing of the Metro apps. Unlike Android, iOS, heck even Mac App store software where the base price for a paid app is 99 cents, Metro apps will be 50 percent costlier starting at 1.49$. Developers can charge up to a 999.99$ for their apps. Not the greatest way to make people buy Metro apps we think.
More Emphasis on Trial Version
The Windows store might let you try any paid app for a full week, as Microsoft highlights in the announcement. However it is at the sole discretion of the developers to decide about the trial version of their apps. If it is adopted by majority (which looks likely), it will definitely filter lower quality apps because users will get to test the full functionality of the app to decide if it worth the money.
In App Purchases
This form seems to be the favourite of most developers as you end up spending a whole lot more than what you spend on normal paid apps. What is annoying though, is the support of in-app purchases even for paid apps, which is becoming an ugly trend lately. Angry Birds Space is an ugly example that comes to mind which prompts users who bought the app to buy additional stuff to get the “complete experience”.
Advertising is Restrictive on Metro
Microsoft unlike Google and more like Apple, is enforcing significant restrictions on the type of ads displayed on Metro apps including restricting developers by restraining developers from using tiles, notifications, app bar or the swipe from edge interactions for displaying ads, not to mention strict no-obscene-stuff-please policy.
More Revenue, More Share
Microsoft gets 30% of the revenue generated from the apps initially. If your app is successful enough to generate a revenue above 25,000$ , Microsoft will be taking only 20% of the revenue.
Concluding
With the recent loss generating quarter, Microsoft will be pinning its hopes high on Windows 8 to spring back. Windows 8 with the much hated Metro will be a tough sell for sure and it will be interesting to see if the Metro app experience will compel the PC users to shift to Windows 8. Lets wait and watch.
