Taiwanese ODM notebook makers said that Microsoft and Intel have reached an agreement (Strange. No one asked the customers. SubEd.) to limit future Windows 7-based netbooks to 10.2 inches, instead of 12.1 inches. Furthermore, they added that this might have a negative impact on VIA Technologies.

This newly set limit should put a stop to 11.6 inch Atom Zxx-based netbooks after Windows 7 launches, the sources say. So, Netbooks higher than 10.2-inch will thus not get the lower Windows 7 licensing rates that Microsoft will grace their OEMs with.

Such a move is expected to hurt VIA due to their price advantage in 11-inch and higher segments, whereas Atom proudly stands as the king of the 10-inch sector.

More here.