23 Apr 16 – Microsoft defers $1.6B in Windows 10 revenue

Home Forums The Poll Discussion 23 Apr 16 – Microsoft defers $1.6B in Windows 10 revenue

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This topic contains 5 replies, has 4 voices, and was last updated by Christian Christian 1 year, 7 months ago.

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  • #4444
    Nick Francesco
    Nick Francesco
    Keymaster

    Notice it’s only deferred. That means some time down the road, Microsoft plans to get that money. Which means they’re going to charge us sometime. Is this a hint of the Windows subscription model?

    #4445

    HotDawg
    Participant

    I think it is the same as the razor companies that almost give you the razor handle, then make their money on the blades. Or the diabetic’s glucose meters that end up free, but the test strips are where they make their money.

    Where you used to pay a one-time fee to ‘license’ a Microsoft package — I think many of those are now going to be for a fixed term, renewable license. Even many of the ‘free’ apps on the Microsoft store are laden with adds, which you can eliminated for a price. Evey time you turn around, there will be the opportunity for them to suck money out of you.

    Why do you think Microsoft is pushing so hard to get everyone off anything but Windows 10? I have heard that even the new Intel processor CPUs will be set to run only Win 10.

    The other money-making opportunity for MS is the spyware that is inherent in 10. Did you read the user agreement when you tried to use Cortana the first time? They have (with it) complete access to everything on your computer. Will they be selling that information? They have a right to. Suddenly the fact you have an unregistered copy of WP 5 may get turned over to the current owners of WordPerfect.

    #4446

    ScreenScream
    Participant

    I chose “Couldn’t happen to a nicer company” with the clear understanding that the choice was thick with sarcasm; if it was not, I withdraw my vote thank you very much. 😉

    #4447
    Christian
    Christian
    Participant

    I don’t see how it’s deferred. Those who took the upgrade aren’t on the hook for anything. If a subscription model is coming, that would be new revenue from the next upgrade cycle. Maybe it’s what Microsoft thinks it can get from Windows 10 as a platform for ads, or from developers paying to host apps in the app store?

    #4448
    Nick Francesco
    Nick Francesco
    Keymaster

    If Microsoft makes the next upgrade, to a subscription model Windows, mandatory, then, yes, it’s deferred income.

    #4449
    Christian
    Christian
    Participant

    Okay, I didn’t know what deferred income meant. If you do I think the news will be clear, and boring. They’re talking about spreading the income already earned (from selling Windows 10 to OEMs) throughout the supported lifecycle for Windows 10 (until 2025). Windows 10 deferred income model.

    This is a standard accounting practice when a large sum of money is paid up-front but the company is on the hook for providing future services. Nothing to do with future subscription fees.

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