I suspect that you are correct, but it is only the download version that is cheaper than Windows 7 was (which wasn't an option with 7). Just goes to show how much manufacturing, packaging, and distribution must cost. Exactly the same thing happened with OS X once they moved to the Internet for software distribution.
If you want a disk back up it will cost you a extra £12 and I bet they put a few quid on top of that for a profit.
Duplicating and packaging is not that expensive, certainly not for a large company like MS and would add very little onto the price of the software.
I know someone who gets CDs pressed for his music and even in the small amounts he sells it is not that expensive.
The most expensive part is the master, once that is made the rest is easy. Sure online is cheaper, but not by much.
I think the reason why the upgrade is cheap is because Microsoft is worried that it will not take off, so do a BBC type thing* and offer the software cheap so people will buy it and install it on their PC and then there is no going back. We are the easy target, Joe pubic, the normal home user, the problem for Microsoft is trying to get large corporations to switch and a lot of them have just switched to windows 7.
i only got windows 8 because someone else paid for it, but I still got a few days until i need to decide if I am going to keep it. how people downloaded it and decided it is not for them and got a refund?
I doubt we will ever know.
If I decide to keep windows 8, then I might just keep it in storage for while and see what happens when they bring out the first service pack, but if people think that Ms will give windows 8 a start menu and allow people to boot direct to desktop then they should think again. MS will not do that, after all they are hoping that we will spend money in their store and buy apps which we don't really need.
If you don't like the modern UI, then third party software is the only way to go or go back to windows 7/XP
* as for my statement about the BBC, I meant then they started to flood the market with Freeview boxes with no slot, to make it more difficult for a subscription service to replace the licence. they knew what they was doing.
Adrian
Desktop machine now powered by windows 7 pro 64bit , laptop by ubuntu
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