Software giant Microsoft has defended its pricing for the Windows 7 computer operating system. The prices are about 17 per cent cheaper than Vista, and Redmond has said that people who buy PCs before the new system goes on sale in
October will get free upgrades.

Microsoft has also hinted that is taking limited pre-orders for Windows 7, selling some for as little as $50. It says that with all these cuts and offers Windows 7 will end up looking a lot cheaper than its clunky predecessor.

For normal customers it will cost $120 to upgrade their existing machines to the Windows 7 Home Premium version, $10 less than the comparable Windows Vista upgrade software. Upgrades to the Professional and Ultimate versions will cost $200 and $220 which is the same as Vista.

However this figure is being considered a little steep, and some analysts think that Microsoft could be shooting itself in the foot. The Apple friendly press has pointed out that the Leopard to Snow Leopard upgrade is only $30, so why is Microsoft charging so much to bail itself out of the Vista mess.

If you thought the upgrade price was steep. versions meant to be installed from scratch on a computer will cost $200, $300 and $320 for Home Premium, Professional and Ultimate.