An Analysis of the Costs and Benefits of Delaying the Release of Windows XP

Abstract

Various parties are urging Microsoft to delay the release of their new PC operating system, Windows XP. Those calling for a delay cite features in Windows XP that they claim threaten competition in software in ways reminiscent of Microsoft's actions to protect Windows from Netscape Navigator's Internet Browser in the mid-to-late 1990s. However, Hahn argues that circumstances in the case of Windows XP are quite different. While it is not possible to quantify the impacts of delay, the evidence strongly suggests that the costs would be substantial and the benefits to competition would be minimal at best. Indeed, there is good reason to believe that the release of Windows XP will increase consumer choice and provide additional competition in key software - most significantly, in instant messaging. In the end, the evidence leans heavily towards supporting the timely release of Windows XP. The only parties that clearly stand to gain from a delay are Microsoft's rivals.