Windows 10 is not a free upgrade, Microsoft said last week. It’s a “marketing and promotional activity.”
The odd nomenclature appeared in Microsoft’s 10-Q filing with the U.S. Securities and Exchange Commission (SEC) that highlighted the company’s first quarter financial numbers.
In the 10-Q segment devoted to revenue recognition — typically several paragraphs of static boilerplate — Microsoft brought up Windows 10, specifically the free upgrade it plans to hand out to users of Windows 7 and Windows 8.1 after Windows 10’s summer debut.
“This offer differs from historical offers preceding the launch of new versions of Windows as it is being made available for free to existing users in addition to new customers after the offer announcement,” Microsoft said. “We evaluated the nature and accounting treatment of the Windows 10 offer and determined that it represents a marketing and promotional activity, in part because the offer is being made available for free to existing users [emphasis added].”
There was method to Microsoft’s apparent madness. Continue reading