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foxtail said:

"The immediate revenue hit is unlikely to be large, as Microsoft gets no more than $500 million of its $20 billion or so annual Windows revenue from upgrades, analysts said. The vast majority of Windows revenue comes from hardware makers installing it on new personal computers and businesses paying for multi-year licenses." - source


that's actually a great point.  i've never paid for a window's upgrade ever anyways so the free upgrade really isn't that big of a deal to their current finacials.  hadn't thought about it like that.