Microsoft has announced that the new Windows 7 (a.k.a. Windows Vista Try-It-Again) will also run on the new Netbook category of small, low-cost laptops. This will probably mean that M$ will spend a couple hundred million bucks in marketing trying to 'redefine' the Netbook, since the new Window 7 Netbook wil require 2GB RAM, a 1.5Ghz+ processor, special DRM-enabled hardware and cost $500 minimum (with Vista er 7, taking up about $60-70 of that pricetag).
A classic case of M$ trying to market its way out of a mess it got itself in. I wonder how they will respond at the deluge of sub-$100 Netbooks with a non-Intel processor and no-BIOS in them, these will leave Microsoft in the dust and increase the marketshare of Linux to 30-40% of all PC's sold, easily. It will be nigh impossible for M$ to out-market and out-flank these. My guess is they'll try a last ditch effort to put Windows CE on these things, but this will result in poor customer reviews as the software will not be compatible with the normal Windows programs, effectively splitting the franchise in two incompatible camps which will also lead to it ruin.