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Retail vs OEM: Which License Do You Need?

Understanding the two main types of Windows 11 licenses

When shopping for a Windows 11 license, you'll encounter two main types: Retail and OEM. Both give you a fully functional copy of Windows 11, but they differ in important ways that affect flexibility, support, and price.

What is a Retail License?

A retail license (sometimes called a "Full Packaged Product" or FPP) is what Microsoft sells directly to consumers. It's the most flexible option available.

Key Benefits of Retail

  • Transferable: You can move the license to a new PC if you upgrade or replace your computer.
  • Direct Microsoft Support: You're entitled to activation support directly from Microsoft.
  • No Hardware Tie: The license isn't permanently bound to specific hardware components.
  • Can Be Reinstalled: You can format and reinstall on the same PC without issues.
Best For: Users who build their own PCs, upgrade frequently, or want maximum flexibility. If you might change your motherboard or move to a new computer in the future, retail is the safer choice.

What is an OEM License?

OEM stands for "Original Equipment Manufacturer." These licenses are intended for PC builders and manufacturers to pre-install on systems they sell. However, they're widely available to consumers at lower prices.

Key Characteristics of OEM

  • Hardware-Locked: The license is tied to the first PC it's activated on (specifically, the motherboard).
  • Non-Transferable: You cannot legally move the license to a different computer.
  • No Microsoft Support: Microsoft directs you to the hardware manufacturer for support.
  • Lower Price: Typically 30-50% cheaper than retail licenses.
Important: If your motherboard fails and needs replacement, an OEM license may not reactivate on the new hardware. This is a significant risk to consider.

Quick Comparison

Feature Retail OEM
Transferable Yes No
Microsoft Support Yes No
Hardware-Locked No Yes
Typical Price Higher Lower

Which Should You Choose?

Choose Retail If:

  • You plan to upgrade your PC or build a new one in the next few years
  • You want the flexibility to transfer your license
  • You value having direct Microsoft support as a safety net
  • You're a PC enthusiast who frequently changes hardware

Choose OEM If:

  • You're on a tight budget
  • The PC will be used until it's completely obsolete
  • You're building a PC that won't need major hardware changes
  • You're comfortable handling any support issues yourself

A Word of Caution

Regardless of which type you choose, always purchase from reputable retailers. Extremely cheap licenses (under £30/€35) are almost certainly grey-market keys that risk revocation. Our guide on avoiding revoked keys explains the risks in detail.

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