There's been a lot of speculation lately that Microsoft (NASDAQ:MSFT) may have two new versions of Windows 8 in the pipeline: a low-cost version and a free version bundled with Bing. However, these two might actually be one and the same. Reports are now emerging that these two rumors will actually be the same thing, a new version of Windows 8 with an inexpensive licensing fee that will be heavily bundled with Bing, and will be targeting lower-cost devices. The goal of the new release will be to drive usage of Bing, OneDrive and other Microsoft services.
In this segment from Friday's Tech Teardown, Motley Fool tech and telecom bureau chief Evan Niu discusses what this will mean for PC vendors, for consumers, and for Microsoft. Evan notes that after the rise of iOS and Android, which both use completely different pricing strategies to Microsoft, Microsoft's pricing power has been somewhat damaged. Evan then looks at the new low cost pricing strategy, and compares it to the old model of charging $50 licensing fees.
Erin Kennedy has no position in any stocks mentioned. Evan Niu, CFA has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.