Calculations based on Feb. 2008 Vista price cuts

Microsoft could drop the price of Windows 7 to around $100 when it announces retail prices later this month, according to calculations based on an earlier Vista cost-cutting move.

Although Microsoft is not expected to go public with Windows 7 retail prices until next week, if it drops them by the same percentages it did in February 2008 when it cut U.S. prices for three editions of Vista, the upgrade to Windows 7 Home Vista could be $106.

If it does cut prices, Microsoft's motivations could range from a recognition of the recession's impact on consumers to a desire to move as many users as possible to Windows 7 -- which has been generally praised by reviewers -- to stem defections to other platforms, such as Apple's Mac OS X.

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