Microsoft's worldwide launch today of Window Vista operating system for consumers - the United States-based software giant's biggest product introduction in more than a decade - is expected to help jump-start new expansion initiatives across China, including the much-delayed release on the mainland of its Xbox 360 game console.
Those efforts will be backed by more than US$300 million (HK$2.3 billion) of fresh investments by Microsoft in Chinese software and technology services companies, and research and development activities on the mainland.
'We will have a year that is sure to keep everybody busy and excited about the rollout of new products,' said Timothy Chen, chief executive at Microsoft Greater China.
The company's partners on the mainland appear to see the same rosy prospects, as 17 original equipment manufacturers agreed to release about 79 new Vista-ready personal computer models in time for this week's launch. China accounted for about 10 per cent of annual global PC unit sales.
Over the past year, Microsoft has secured commitments with key Chinese original equipment manufacturers - including Lenovo, Founder Electronics, Tongfang and TCL - to pre-install copies of Windows into more of their PCs. That strategy was geared to circumvent the practice of some mainland consumers to buy a PC with no operating system installed, or with Linux installed, and then installing a pirated copy of Windows on the machine.
Mr Chen said a high rate of Vista adoption, up to 60 per cent, was expected in China's leading urban cities. 'But the adoption rate will be less in the low-tier cities, where a computer can sell below 3,000 yuan,' he said. 'For businesses, they need to plan for changes in their operating platforms so the typical take-up will be about 12 to 18 months.'
