PC’s by the Minute

Posted by Jeff Chenkus on May 22, 2006
Filed Under Misc. Gadgets | Stumble This

Looking to tap a new market to expand their business, Microsoft has announced a new program called FlexGo. The way it works is that the consumer pays for half the cost of the computer up front, and then buy minutes of usage from Microsoft. Eventually the computer will be paid off un der this arrangement. But, if you run out of minutes, the computer will cease to work until more are purchased.

They declined to give out pricing/payback information, but I have a suspicion they are looking for a reasonable profit margin on this. The ability to sell more software for all these new computers is obviously a goal, but I think the only way they are going to attempt this is if the business can stand on its own. Too much of a risk to put out another money losing product to make money on the side deals/benefits.

Posted by Jeff

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