Windows XP = $1 Billion in marketing

  06/27/2001 1:19:19 AM MDT Albuquerque, Nm
  By Dustin D. Brand; Owner AMO

The advertising and marketing blitz for Windows XP has begun, and MS isn't spending the most.
  Microsoft, along with Intel and industry partners, have started their "billion-dollar" marketing campaign for Windows XP, due for release this coming Oct. 25.

  Intel has a huge vested interest in Windows XP because it has been tuned to run very well with their Pentium 4 Processors. Intel along with the remaining partners will be spending $800 Million on marketing Windows XP while Microsoft will spend the other $200 M.

  The $800 Million is split between PC makers and manufacturers of peripheral products that work well with Windows XP. Intel's part of the money includes the total of $300 million that Intel will spend this year on marketing not Windows XP but its Pentium 4 chip, which first shipped in November.

  Obviously Intel hopes to spark Holiday season purchases of new computer systems shipped with both the Pentium 4 and Windows XP. "Intel has done a ton of great work with the Pentium 4, including support for real-time full-motion video," said Greg Sullivan, a lead product manager for the new OS. "That work shines with Windows XP."

  "Intel wants to reinvigorate the PC industry," said Intel spokesman George Alfs. "All of this - Windows XP, the Pentium 4 and other industry initiatives - it all helps in delivering a stronger second half."

  PC manufacturers, including Compaq, Dell, Gateway, Hewlett-Packard, IBM and Sony, were in Las Vegas to listen to the Windows XP marketing pitch. There is hope that much-needed sales boost result from the release. Also participating were peripheral hardware manufacturers such as Canon, which sells digital cameras that will hook up easily to Windows XP machines; ease of connection of digital cameras and organizing of digital photos is a big selling point of the new OS. Also supporting the marketing push were independent software vendors, such as Adobe and McAfee; and channel partners and retailers such as Circuit City and CompUSA.

  In May, group VP Jim Allchin, who heads the Windows group, had promised that Microsoft would spend "hundreds of millions of dollars" on marketing Windows XP and deliver a launch event in October to match that of Windows 95 six years ago. Tuesday's numbers show that the first part of Allchin's promise will be delivered. Not barely because the XBOX, Microsoft's entry into the Video Game Hardware/Sofware Business releases on November 8th, just weeks after the Windows XP launch. How much is Microsoft spending on the XBOX Marketing budget you ask? $500 Million, with combined advertising to easily match the $1 Billion for the Windows XP launch by years end.

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