Microsoft ends volume pricing for consumer Windows

Microsoft said it began informing customers and its reseller partners of the change on Friday. The shift in policy comes at a time when some analysts are questioning just how much demand—corporate or consumer--there really is for Windows 2000 on the desktop. One analyst said Microsoft's decision to end volume licensing of consumer versions of Windows will result in a price increase for a number of businesses. "The screw is turning here. If you're an enterprise organization and have a lot of Windows 95 or 98 out there, Windows just got a whole lot more expensive," said Gartner analyst Chris LeTocq. LeTocq said Microsoft's announcement should be interpreted as a "revenue enhancer," a move that can come none too soon for the company. Microsoft issued a profit warning Thursday, citing IT and consumer PC demand for its desktop applications as the primary reasons for restating both its second-quarter and fiscal 2001 earnings.