Microsoft to cut Windows 8.1 price by 70 percent for low cost devices

Microsoft is reportedly offering a discount of 70 percent on Windows 8.1 for low-cost devices with a starting range of 229 dollars.

The software giant is slashing the rates on inexpensive devices such as the Dell Venue 8 Pro in order to compete with other low-cost devices that run on rival operating systems.

Device makers will be charged 15 dollars to license Windows 8.1 and preinstall it on devices that retail for less than 250 dollars, instead of the usual fee of 50 dollars, Cnet reported.

Meanwhile, some observers see this as Microsoft's attempt to meet the challenge of Google Chrome-OS based Chromebooks, which range from less than 200 dollars to about 300 dollars.