Microsoft has announced the unusual step of reducing the price of retail copies of its Windows Vista operating system.

Microsoft hopes the price cuts will drive up Vista sales – but in so doing, it has highlighted the difficulties it has experienced in persuading customers to upgrade to its flagship release.

According to the software giant the price changes, which will take effect globally with the retail release of Windows Vista Service Pack 1, will have the biggest impact on the Vista editions introduced in 2007: Windows Vista Home premium and Ultimate editions.

In a question and answer session with corporate vice president for Windows Consumer Product Marketing at Microsoft, Brad Brooks, posted on the firm’s web site, he said: “It’s a great opportunity for our retail partners to sell more stand-alone copies of Windows, and help grow this small but important part of our business.”