Windows 7 pricing formally announced

After months of speculation, Windows 7 pricing options have finally been unvieled. Not a lot of surprises here, but I do have a lot of information to relay due to the sheer number of options available to end users.

Let's start with upgrade pricing, which is likely how most early buyers will obtain their copies. If you're upgrading an existing PC (with XP or Vista), you're entitled to buy software at these prices (and I'm adding a penny to every price in this story in order to avoid obfuscation of the true costs involved; all prices are MSRP and are subject to further discounting from retailers):

Windows 7 Home Premium upgrade - $120
Windows 7 Professional upgrade - $200
Windows 7 Ultimate upgrade - $220

Again, not a lot of mystery there, but for many, disappointingly on the expensive side. Those are the exact same prices that Vista upgrades cost today, with the sole exception that a Vista 7 Home Premium upgrade costs $130, $10 more.

If you're planning to install from scratch (say, on a home-built PC or from some other OS), you'll have to pay full fare. Those fees are:

Windows 7 Home Premium - $200
Windows 7 Professional - $300
Windows 7 Ultimate - $320

Again, this is the same current pricing as Vista at retail, except $40 cheaper for Windows 7 Home Premium.

The good news comes if you're willing to pre-order an upgrade copy. Confirming earlier rumors, Microsoft is launching a steeply discounted pre-order offer, beginning June 26 (tomorrow). If you're willing to pay now and wait four months, you'll get the Windows 7 Home Premium upgrade for $50 and the Windows 7 Professional upgrade for $100. Those are big discounts, and if you're looking to upgrade current machines, I'd highly recommend jumping on it. The offer ends July 11 in the U.S. and Canada (or "while supplies last"), so don't sit on the fence too long. You can get your pre-order copy here, and general retailers like Amazon and Best Buy will also be selling the steeply discounted copies.

Finally, if you're buying a new PC, beginning tomorrow you will be entitled to a free (or, in some cases, low-cost) upgrade from Vista to Windows 7. Details on specific machines and manufacturers honoring this program will be available on this page beginning tomorrow... though that "low-cost" caveat is a little troubling.