This week, Microsoft will finally announce its retail pricing terms for Windows 7. As expected, the overall prices are in-line with those of Windows Vista, and are not significantly lower (or, as some had curiously rumored, higher). That said, those that want to save significantly on Windows 7 can do so if they can pull the trigger in advance of the product’s release.

Here’s what’s happening.

Retail/electronic pricing

As with previous versions of Windows, Microsoft will offer Windows 7 in boxed, retail copies in both Upgrade and Full packaging. It will also offer these products electronically from the Microsoft Store online. Upgrade versions of Windows 7 are aimed at qualifying users of previous versions of Windows, and are thus less expensive. (And if you’re running Windows Vista, they can be used to perform an in-place upgrade of that OS to Windows 7.) Full versions are more expensive and can only be used to perform a clean install of Windows 7. A third option, Windows Anytime Upgrade, lets you electronically upgrade in-place from one version of Windows 7 to another.

Upgrade versions

The estimated retail pricing for the Upgrade versions of Windows 7 in the US are as follows:

Full versions

The estimated retail pricing for the Full versions of Windows 7 in the US are as follows:

Windows Anytime Upgrade

Windows Anytime Upgrade (WAU) is Microsoft’s electronic in-box upgrade technology, which will be provided in Windows 7 Home Basic, Starter, Home Premium, and Professional. The estimated retail pricing for the Windows Anytime Upgrade versions of Windows 7 in the US are as follows:

Pricing notes

Microsoft notes that the average price of Windows 7 Home Premium is about 10 percent less expensive than the corresponding Windows Vista product edition. And sure enough, that’s basically true: The Upgrade version is 8 percent cheaper, while the Full version is 17 percent less expensive. But the pricing for Windows 7 Professional and Ultimate is unchanged from the Vista pricing.

Pricing outside the US is sometimes even worse. Those in the EU can save just 4 percent over Vista for the Windows 7 Home Premium Upgrade version, while they’ll save 13 percent for the Full version. (Again, the other editions are priced identically to Vista.) Meanwhile, the Upgrade version of Windows 7 Home Premium is 12 percent higher than Vista in the UK for some reason. The Full version is 12 percent cheaper.

Save big with Windows 7 pre-orders (Now expired in US)

While the estimated retail prices for the various Windows 7 versions are not substantially different than those of Windows Vista, Microsoft is offering a limited-time concession to budget-conscious customers, but only in select markets. In the US, Canada, and Japan, you can pre-order Windows 7 Home Premium or Professional between June 26, 2009 and July 11, 2009 (July 5 in Japan), and you will save well over 50 percent over the normal retail price.

Customers in France, Germany, and the UK can pre-order Windows 7 Home Premium or Professional July 15, 2009 through August 14, 2009, and while supplies last.

In the US, you can get Windows 7 Home Premium Upgrade for $49.99 (a $70 savings) and Windows 7 Professional Upgrade for $99.99 (a $100 savings) during this time. This special offer is available online only from retail partners like Amazon.com and Best Buy, and via the online Microsoft Store (in participating markets). (The special pre-order prices vary per country.)

Users in other locales face similar savings.

Source: http://www.winsupersite.com/win7/pricing.asp