However, the SVP explained "You don't understand. This doesn't cost us money. The preinstalled software on a PC is a substantial source of revenue." All of the preinstalled software that is present on new Windows machines is there because two things happen once an OEM starts shipping millions of PCs. First, the OEM starts paying much lower license fees for Windows. Second, the OEM becomes in effect a major software distribution channel. Software producers and providers of network services want, and will pay for, the opportunity to appear in front of millions of users. Thus, the ecosystem of preinstalled Windows-based software subsidizes the cost of a PC; replacing that with Linux would actually increase the price of the system.

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