This seems to be a pretty logical move seeing that the competing phone platforms (iPhone,Blackberry and Android) all either give away their OS for free or package it with their own hardware at no additional cost. In the cut throat market of Mobile Phone ever reducing a handset by $8 to $15 dollars (what it currently charges) can make a huge difference in sales as seen with the boost the iPhone 3G got when it was released for $99. What will also be interesting to see is if Microsoft make Windows Mobile 7 OS also free for other ARM based devices such as all the tablets, and eBook Readers which the Android OS seems to be currently dominating.
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