by August 7, 2013 0 comments

Microsoft has clarified that Windows 8.1 is an update and not an upgrade.

“Software updates are evaluated on a case-by-case basis to determine whether they meet the definition of an upgrade, which may require revenue to be deferred and recognized when the upgrade is delivered,” Microsoft stated in a Form-10K filing.

If it charges for an upgrade, the move might impact the revenues generated by Windows. So, it is for a good reason Microsoft terms it an update.

“Windows 8.1 will enable new hardware, further the integration with other Microsoft services and address customer issues with Windows 8, and will be provided to Windows 8 customers when available at no additional charge. We evaluated Windows 8.1 and determined that it did not meet the definition of an upgrade and thus have not deferred revenue related to this planned release.”

At the Worldwide Partner’s Conference (WPC) 2013 event, Microsoft’s Tami Reller stated that Windows 8.1 is a free update and that “it’s safe to say that’s a lot of functionality coming free in an update”.

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