Microsoft is gearing up to launch the new Windows 7 OS later this year and there seems to be somewhat of a battle brewing in the sidelines between Microsoft and PC makers over the pricing of Microsoft’s latest software.

If Microsoft wins the battle it will undoubtedly have a wide impact on the compatibility and cost of PCs available to corporations and customers.

Many PC makers are questioning the proposed pricing of $50 which Microsoft wants to charge for entry level Windows 7 which will be known as Windows 7 Starter and is triple the price Microsoft gets for the cheaper version of Windows available now.

The battle will no doubt cause profit to be squeezed as Microsoft has told manufacturers Windows 7 Starter will only be for netbooks, and presently manufacturers only pay $15 for Windows Xp for netbooks.

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Tags: microsoft