An interesting story is floating around the internet today. The line goes something like this; Intel and Microsoft are working together to limit the licensing of Windows 7 on netbooks.

Now if we believe what is being bandied about we find that special OEM pricing for the starter version of Windows 7 will only be available to 10.2-inch netbooks and smaller.

Many claim this is going to hurt Via as they have a better grip on the 11-inch and up netbook market. However, there is an alternate possibility; what if someone is finally trying to put netbooks into a proper category? After all in an 11-inch netbook you can have better hardware and cooling. So it stands to reason that keeping the software cost on netbooks 10.2-inches and smaller would keep them in a lower price range where their lower performance naturally puts them.

read more here.

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