Microsoft reportedly restricting Windows with Bing licenses only for screens 14" and smaller

Windows 8.1Windows with Bing is has proven to be a popular SKU for OEMs due to it costing very little and even being free for devices with screen sizes under 9 inches. Windows with Bing is a full version of Windows with the only catch being that OEMs must set Bing as the default search engine and as the homepage. Users who purchase these PCs can then change these settings if they prefer.

Earlier today, The Register reported that there were 115,000 notebooks running the Windows with Bing SKU sold in the UK in the fourth quarter of 2014.  However, over 81% of these notebooks or 94,000 of them were running this Windows SKU on 15.6-inch devices.  It is also reported that Chromebook sales were unimpressive in the UK, and that Microsoft overreacted to the threat by offering such fantastic promotions to PC OEMs with the Windows with Bing program.

“Microsoft realised it over-egged the response to Google and is limiting the licences,” said one source.

Therefore, Microsoft will be restricting the Windows with Bing SKU to devices with 14-inch displays or smaller including a minor price increase for the remaining licenses available starting next month.

Investors also didn’t respond too lightly over the drop in Windows revenue in Microsoft’s fourth quarter of 2014 earnings, and it seems like Microsoft is looking to bring more profit to the Windows division.

Windows 10 is still a little far out, but it’ll be very interesting to see how Microsoft prices their new flagship OS to PC OEMs.  Especially, as it looks to recoup some of the immediate financial losses by giving away Windows 10 for free in the first year after its release to users running Windows 7 and Windows 8.1.

Source: The Register via Neowin