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Taiwan Forces MS To Cut Prices, Unbundle Software
bev_tech_rob writes "This article from ZDNet reports how Microsoft has agreed to cut prices on their software after a backlash from the country's effort to crack down on piracy. Seems the citizens were forced to obtain pirated copies due to the high cost and having to buy software they did not need to get the parts they DID need."
So even though a federal court found MS guilty of doing the same thing here, MS got to keep their high prices and predatory practices. Amazing.
It seems as if Taiwan has succeeded in doing what John Ashcroft and Co. (and his predecessors, for that matter) could never do: control Microsoft. Strange, isn't it, that Taiwan can effectively demand concessions from a foreign company when our own DOJ can't even enforce the judgements they do have against a domestic one...
Yeah, the future's bright. I think I'm going to start a monopoly somewhere - then I can tell John Ashcroft and the DOJ where to go...
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if they're using a computer, which has been sold to them from the back of a truck, they probably need an operating system Seriously speaking, it's all boils down to economics. While working in Taiwan, I was taking home a whopping US$11,000 / yr., and people generally working in the same salary range as me all had computers in their home. Why? The hardware is cheaper since most of its made locally anyway, and the software is all pirated. Think about the DVD or console gaming market. They price fix by using region encoding. I mean... for Region 2, for example, how are countries such as Japan and S. Africa, lumped into the same region as Europe? Or how is Mexico excluded from the US/Canada Region 1? It's all about the pricing and cost of living. So a person living in the US, could not go into Mexico to buy a cheaper DVD, and play it back on his own DVD player in America (of course, this isn't exactly true, but let's take the average consumer who doesn't hack his box). M$ is essentially in the same boat, but instead of region encoding, it uses language to regionally encode its software. For the most part, the average US computer buyer probably doesn't want a machine in Chinese, while the average Taiwanese computer buyer probably doesn't want a machine in English. M$ can essentially fix the price in Taiwan to a lower price point, and get more people to buy the software at the lower price, rather than selling it at a higher price point, but getting a handful of sales instead. While lowering the cost may lower M$ price margin, I figure that the volume being bigger would make its profit much higher. On the other hand, this is Taiwan we're talking about... It's a very price sensitive area, so the pirates will always be around. The trick is for M$ to lower their prices to a point that the difference between buying a legit copy over a pirate copy is trivial. The problem is that with the prices of hardware and media coming down as they are, the pirates will always be able to produce their wares for pennies, and it's all a matter of how much inventory they can keep in stock, without cutting into their profit margin, however minimal it may be after M$ puts a price cut. In the end, people should probably just migrate over to Linux, and not worry about licensing and payments as much, but I figure that's not gonna happen at anytime soon.