Microsoft and Intel have reached a consensus to decrease the upper screen-size limit for netbook PCs equipped with Windows 7 from 12.1 inches to 10.2 inches, according to sources at Taiwan-based ODM notebook makers, who added that this may have a negative impact on VIA Technologies.
The restriction is expected to end PC vendors' 11.6-inch Atom Zxx-based netbook product lines after the launch of Windows 7, the sources noted.
Although VIA does not put any restrictions on vendors' choice of specifications when using its CPUs and chipsets, products larger than 10.2-inch will not qualify for the lower Windows 7 licensing rates Microsoft will offer OEMs for their netbook products. This will cut into VIA's price advantage in the 11-inch and above segment, while the 10-inch segment has already been dominated by Intel's Atom platform.
Source: DIGITIMES