Windows 7 Starter/Home Basic Edition for netbooks will have a lower price tag, but will come with serious limitations for PC makers. Basically, the lower price would apply only to netbooks with displays 10.2″ (and smaller), 250GB mechanical drives or 64GB SSD, single-core CPU with a speed of less than 2Ghz and a thermal design of 15W or less.
In some ways, it stinks because consumers have been demanding larger netbooks, so 11”, 12” and 13″ netbooks are creeping up. Also, dual-core Atom processors are around the corner.
On the other hand, Microsoft has lifted restrictions on graphics power because Vista is designed for DX10. Touch will also be “allowed”. The hardware requirements will be updated quarterly and will be frozen when Windows 7 will be available. [techarp, zdnet]
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