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Is your netbook small enough for Windows 7?

IT Industry - Strategy

Need more restrictions? OK, Microsoft is happy to oblige there as well: a maximum of 1GB memory and no more than 250GB of hard disk storage or 64GB solid state.

Apparently Ballmer was pretty frank about the reasoning behind all this: getting more money out of the consumer. Netbooks will still be available with Windows XP, but there will be Windows 7 Starter Edition netbooks at a higher price.

Ballmer has admitted that the licensing of Windows XP Home to netbook makers, the only OEMs which can get it since early last year, was a mistake when it came to pricing.

Indeed, the Windows client division revenues are down 29% year on year for the fourth quarter and that's largely to do with increased netbook sales.

It is a mistake Ballmer does not intend to repeat and he has stated that Microsoft will "readjust those prices north" as far as Windows 7 Starter Edition is concerned.

The good news for the consumer who isn't as interested in having Windows 7 as they are in having a low priced netbook is that Microsoft has made a commitment to continue with the sale of Windows XP Home, the OS that refuses to die, to those OEMs for a year, at least, after Windows 7 launches.

Which means users of larger-screened netbooks, which most people (Micosoft apart) would still agree are indeed netbooks and not laptops, can continue to get decent value for money when buying into budget mobile computing.