Microsoft calls Windows 10 launch a "marketing activity"

Microsoft is expected to launch its Windows 10 operating system in July as a free upgrade for users of Windows 7 or later. But according to the company, it won't be a “free upgrade” but a “marketing and promotional activity”.

Microsoft’s latest quarterly results filing with the US Securities and Exchange Commission is careful to note that the company considers the launch of Windows 10 to be a promotional activity.

Classing it as such rather than an upgrade will allow the company to continue to recognise revenue earned from new sales of Windows 8 as delivered. If Windows 10 were considered to be a free upgrade, the company would have to defer part of the revenue until the upgrade is released.

Computerworld notes that this is not the first time Microsoft has played word games to avoid having to defer revenue - Microsoft deliberately classified Windows 8.1 as an update rather than an upgrade for the same reason.

Conversely, when Microsoft offered a $15 upgrade to Windows 8 Pro for purchasers of a new PC running Windows 7 during an eight-month period in 2012-2013, the company had to defer just under US$1.1 billion ($1.41 billion) in revenue.

Microsoft is yet to officially announce a release date for Windows 10, but earlier this month AMD CEO Lisa Su seemingly accidentally let slip during an earnings call that the operating system is due to launch at the end of July.

Microsoft meanwhile launched a new technical preview of Windows 10 last week, adding more customisation options to the start menu, task bar and Action Centre.

Image courtesy of Robert Scoble under CC