OEM copies of Windows 7 about half off retail

As if Windows pricing wasn't complicated enough, now you've got another option available when it comes to purchasing Windows 7. Pricing for OEM editions of the upcoming operating system have now been released, only to muddle the issue in the extreme for confused consumers.

First, a tutorial on what OEM software is. OEM ("original equipment manufacturer") versions of virtually all applications are made available to computer sellers for the express purpose that they use them to preinstall applications on the computers they sell. When you buy a new computer with Windows preloaded, it's almost a certainty that an OEM version of Windows is installed on it.

OEM copies of software are not supposed to be sold to the public, but in reality it happens all the time. (In fact, if you see pricing on a piece of software that seems too good to be true, it's probably because it's an OEM version. Buyer beware.)

What makes an OEM copy different from a retail copy? The big issue is that once it is installed on a machine, the license can't be transferred to another computer -- ever. It's stuck there come hell or high water or a fatal hard drive crash. OEM copies include no tech support plan, and they don't include retail packaging either.

Some users are OK with these limitations, especially if the license transfer issue isn't a big deal, so it makes sense to buy the software thanks to the steep discount OEM software is priced at.

How steep? For Windows 7 Professional, the OEM version runs $140 from NewEgg, compared to $300 for the full retail copy of the software. Even an upgrade copy of Windows 7 Pro will run $200, so that's a hefty price break. Other versions of Windows 7 are discounted similarly. Ars Technica has more pricing info here.

Should you buy it? That's a tough call, and the one-machine-forever limit of OEM versions of software tend to give me endless amounts of trouble, so I don't often recommend them. Still, if money is a big concern, OEM software can make for a good way to save some cash.