I see your point the fact is a small promotion is not the solution. A 199.99 upgrade is well overpriced given that windows is on a lot of computers around the world.
Yeah, I tend to agree more so if MS are going to push out major updates more often, and this is where the whole 'vote with your wallet' thing would hopefully kick in as MS would have sales numbers to work with; if they see all their upgrades happened in that promotion window then I dare say a bean counter somewhere will work out that running it at that point all the time might be a good idea.
Of course if they continued to do a brisk trade (for upgrades) at the full price then, well, the market apparently says 199.99 ISN'T overpriced.
Yes you are absolutely 100% correct the market has repeatedly told Microsoft "shut up and take my money". But Microsoft needs to also understand that the entire market has changed rapidly in just the last few years. Smartphone and tablet sales are currently larger than pc and this trend not going to slow down. People are starting to look at computers as nothing more than typewriters. Unless you actually have business on a computer you have no reason to own one anymore. Poor writing I need coffee