Retailers are expected to drop the prices of Windows XP computers, as they try to offload them in the wake of Vista's launch.

Many retailers still have laptop and desktop PCs in stock running Windows XP, but with Vista now available, most buyers are expected to choose computers running Microsoft's new operating system.

Industry body the British Retail Consortium (BRC) believes the launch will see a drive in cut price XP PCs. “Whenever new technology comes out, the older variety will see a price cut,” said BRC spokesman Dale Atkinson.

“New technology always prevails and this will be no different when the Vista operating system comes into effect.”

Retail outlets will reduce the price of XP models as they push to “get rid of the old to bring in the new”, he added.

Nick Stanton, store manager at the Tottenham Court Road branch of PC World in London, said: "There will be some price action [on XP systems]." He would not, however, disclose any discount prices.

Dabs, however, will continue to sell XP PCs and boxed versions of the system at their full price. The company's marketing director for internet retailer, Jonathon Wall, said this “is because the company feels the public should have a choice”.

However, the real reason behind this may lie in the fact that internet retailers only hold enough stock for a couple of weeks and will therefore not need to discount products as much as high-street outlets.

This is reflected in the time periods each store will phase out XP machines. Dabs will have no XP products within four weeks, but PC World will have stock for up to six months.

The BRC's Atkinson expects PC manufacturers to agressively price their Vista products, in an effort to attract sales. He said products would be " competitvely priced to beat increasing retail competition”.

Wall agreed: "There will be well-priced products from manufacturers to get the Vista wheel spinning."

According to Wall, an additional benefit of the new operating system will be better specified Vista PCs at XP prices. He said: “There will be good deals for Vista; if anything consumers will find they are getting much better deals for the prices they have got for XP in the past."

This is because higher specifications on memory and processor are needed to drive the operating system, particularly the Home Premium and Ultimate versions.

Both retailers have Vista machines on sale from today - PC World said it had 50,000 laptops and desktops running the operating system available in its shops.

Additional reporting by Emil Larsen 

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