Microsoft managed to grab the lion's share of netbook sales last year, but at a heavy cost. It was forced to offer Windows XP -- a version of the operating system it had largely phased out -- at bargain prices to counter Linux versions. A Microsoft spokeswoman declined to discuss prices it offers PC makers, but people familiar with the matter say the company takes in less than $15 per netbook for Windows XP once marketing rebates are taken into account -- far less than the estimated $50 to $60 it receives for PCs running Windows Vista, a newer operating system that runs on standard desktop and laptop PCs.

Full Article: WSJ.com