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, reported by Taiwan-based Digitimes.
The report mentions that this restriction might end PC vendors' 11.6-inch Atom Zxx-based netbook product lines after the launch of Windows 7, the sources noted. Interestingly Intel and Microsoft didn't reach the agreement before the development and release of the Atom Zxx processors.
This also may have negative impact on VIA's netbook CPUs and chipsets. According to digitimes.com, "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."