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Microsoft Corp.

Windows 98 Sales Soar, Expected to be the Best-Selling Software Package of 1998

Strategic Insights

— 2 min read

Windows 98, Microsoft Corp.'s new operating system, continues to show strong sales, with PC Data Inc. reporting that nearly 510,000 copies were sold between Thursday and Sunday. This is almost the same number of Windows 95 programs sold in a comparable period when that product was launched in August 1995. The sales figures indicate that the upgrade is likely to become the year's best-selling software package. Analysts agree that the sales are boosted by consumers' response to Microsoft's "plays games better" message and the relatively low prices of PCs, with many being sold under $1,000. The lack of fanfare around the product launch, partly due to the Justice Department's investigations, has also contributed to the surprise success.

Key Takeaways:

  • PC Data Inc. reported that nearly 510,000 copies of Windows 98 were sold between Thursday and Sunday, almost the same number as Windows 95 in a comparable period.
  • The sales figures indicate that the upgrade is likely to become the year's best-selling software package.
  • Analysts believe that consumers' response to Microsoft's "plays games better" message and the relatively low prices of PCs are boosting sales.
  • The lack of fanfare around the product launch, partly due to the Justice Department's investigations, has contributed to the surprise success.
  • PC Data Inc. estimates that 40% of consumers who purchased Windows 98 bought the companion CD Microsoft Plus! 98.
  • PC Data estimates Microsoft Plus! 98 sales will exceed 200,000 units in its first week.
  • Computer retail chains such as BestBuy and CompUSA had "aggressively" priced hardware and lots of advertisements just prior to and during the Windows 98 launch.
  • June and July are traditionally very soft sales months for computer hardware and software.
  • Firm executives say that the strong sales are driven by consumer demand and the improvements in the operating system.
  • PC Data officials said its information is based on reports of first-day sales by retailers and mail-order companies.
  • The company will provide daily sales updates throughout the Windows 98 launch.
  • PC Data provides point-of-sale data for software and hardware as well as analysis.

Statistics:

  • Nearly 510,000 copies of Windows 98 were sold between Thursday and Sunday.
  • The sales figures are almost the same number as Windows 95 in a comparable period.
  • 40% of consumers who purchased Windows 98 bought the companion CD Microsoft Plus! 98.
  • PC Data estimates Microsoft Plus! 98 sales will exceed 200,000 units in its first week.
  • The number of PCs in homes has increased from 30% in 1995 to 42% now.
  • PC Data supplies sales information to more than 800 subscribers at software and hardware firms.
  • Microsoft shares rose to a 52-week high to $107.4375 on Monday.
  • The stock was trading at around $105.937 on Tuesday.
  • More than 3.6 million shares of Microsoft were exchanged on NASDAQ.

Sources:

  • Linda Dailey Paulson, Newsbytes
  • Ann Stephens, President, PC Data Inc.
  • Rob Enderle, Analyst, Giga Research
  • Roger C. Lanctot, Director of Research, PC Data
  • The Wall Street Journal
  • PC Data Inc.
  • Newsbytes News Network

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