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Pricing: XP Family License Snafu

When first announced, Microsoft's Family License program for Windows XP sounded like at least a small concession to consumers who, thanks to the operating system's Product Activation technology, could no longer use one copy of the OS to upgrade several home PCs. The program allowed people who purchased one upgrade copy of Windows XP (either Home Edition or Professional) to use the installation CD for multiple PCs by buying more licenses--without additional CDs--at a small discount. Before launch, Microsoft said the discount would probably run between $10 and $30, and that Family Licenses would likely be sold by retailers as well as by Microsoft.

But the post-launch reality turned out to be less rosy. Family Licenses have yet to be offered by any major retailer. And while Microsoft's Web site did offer them--for a bottom-of-range $10 off the regular retail price of an XP upgrade-- people who actually tried to buy them a month or so after XP's launch were told that Microsoft had run out of them. At the time, Microsoft said it had underestimated demand for the licenses.

That situation was "unfortunate and shouldn't have happened," according to XP product manager Kristian Gyorkos, who adds that the company has since addressed the problem. "Everyone now should be able to get [a Family License] via Microsoft.com."

Gyorkos had no explanation for why retailers aren't offering the discounted licenses. But he said that easing the financial burden of buying multiple copies of XP upgrades at $99 or $199 a shot (for Home Edition and Professional, respectively) was only a secondary benefit of the Family License program. It was primarily intended to offer convenience, saving a second trip to the store for people who decided, after buying one copy of XP, that they wanted to upgrade several PCs. In other words, if your family is large and everyone upgrades a PC, XP will still set you back a bundle.

-Yardena Arar

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