Microsoft announced official retail prices for Windows 7 today, setting prices at nearly 10 percent below the prices for Windows Vista—good news for consumers who want new technology without the price tag. It’s also good news for Microsoft, whose strategy will likely boost sales for the long-term Windows 7 lifecycle and short-term Windows 7 promotion.

Windows 7 Home Premium upgrade, which is portending to be Window’s biggest cash crop, will be available on preorder for a shocking $49.99, but only for a limited time—from June 26 through July 11—and only for U.S. customers. Business customers who want the beefier Windows 7 Professional edition upgrade will only pay $99.99 on the promotion

For customers who purchase Windows 7 after the July 11 promotion will pay a substantially higher price. Preorders will still be available, with the standard cost of $119.99. Although this price is more than twice the cost of the promotion price, it is 8 percent lower than Windows Vista, which carried a retail price tag of $159.99 during its 2007 launch. Windows 7 Professional will cost $199.99. These costs will remain the same post-October 22, which is the scheduled release date for Windows 7.

Although most consumers will choose the upgrade route, Microsoft plans to sell new versions of Windows 7 as well. The Home Premium version is $199.99, and other Windows 7 carry the standard (non-reduced) prices. Windows 7 Professional will cost $299.99, and Windows 7 Ultimate will cost $319.99. These prices are, incidentally, identical to comparable versions of Windows Vista. Microsoft’s strategy seems to be in keeping with the price-slashing that is being attempted by software producers in lieu of the economic decline.