Microsoft Develops XP 'Light' for Thailand

GoatJuggler writes with this Bangkok Post report that "Microsoft announced plans to develop a discounted, slightly crippled version of Windows XP for Thailand."

Comments

why do it?

[monadicIO]

The article says "
because of the complexity of an operating system, reducing functionality was not a simple process and every modification would have to be thoroughly tested.
So why would it make sense to spend more money in making these reductions? Why not just give the standard package? I'm missing something here.

Re:why do it?

[DrEldarion]

So why would it make sense to spend more money in making these reductions? Why not just give the standard package? I'm missing something here

Very simple.

User buys XP Lite, uses it for a while, and then decides he needs all the functionality. User then buys XP Home/Pro.

They have now bought two copies of the OS. Money++ for Microsoft.

Unfortunately, this will probably sell decently

[jbardell]

This is quite the desperate attempt by MS to obtain a larger share of the world OS market. Hopefully those in Bangkok will learn that there's an un-crippled, stable, fast operating system out there already, and it's FREE.

Re:Jeez, this article's pretty scant on details.

[LostCluster]

It implies that the reason Microsoft is coming up with this "light" product is because US$99 is too expensive, so they need to come up with a way of slashing the price there without the rest of the world crying foul...

Re:Thailand first, the world second

[tftp]

If this OS comes in Thai language only, then only people familiar with the language can use it. Thai is notoriously complex.

Fighting Piracy For Dummies

[B2K3]

Software publishers in Thailand have begun to realize the huge popularity of pirated software in Thailand: the extreme price differential. You might be able to sell $100 software elsewhere, but when you are selling the $100 software a few feet away from someone selling a pirated copy for $5, what is the rational consumer going to do? Video game manufactures now produce Thai versions of games, complete with a Thai installation manual and even Thai ingame instructions, for only a a few dollars more than the street price of a pirated version. If someone isn't willing to pay 20 times more for the real version, perhaps they're willing to pay only 3 times more. Disclaimer: I was an American who I lived in Thailand for five years. Has anyone else gone shopping at Panthip Plaza?

Re:Fighting Piracy For Dummies

[foonf]

Microsoft doesn't care about piracy in Thailand or elsewhere, in fact it works largely to their benefit. If people who wouldn't be able to afford their software anyway are pirating it illegally, Microsoft doesn't lose any money, but they gain users and market share.

The point of this effort isn't to stop piracy, and Microsoft knows it won't. The problem is that the Thai government is setting up a program for the development of a very cheap computer, and they want to distribute a legitimate operating system with it. Since they weren't going to pay Microsoft's asking price, there was the potential of a very large number of computers being distributed without a Microsoft operating system. And even assuming most of the buyers replace the preinstalled OS (Linux, whatever) with a pirated copy of Windows, it still would have the potential of creating a substantial, new base of computer users not running Windows. This plan heads off that possibility. Whether they replace it with a pirated full version of XP or not, anyone who buys this thing is going to be using Windows, and that is what matters to Microsoft.

Re:Thats great...

[LostCluster]

if crippled means, getting rid of internet explorer, the windows kernel, and everything else, and replacing it with, linux 2.6.2, gnome 2.4....

Bingo... Microsoft is lowering the price for Windows XP to this country because if they didn't, their government would start subsidizing Linux-based PCs. This is Microsoft's last chance to make sure that the standard PC there still runs Windows.

This is the definition of monopoly

[nut]

Microsoft are going to spend money and time devaluing their product to sell it to people who can't afford it at their current price. This from a company that makes a profit of over $1 billion a quarter.

Re:You mean you can cripple it more?

[dorsey]

You're not serious, right? Just because they're forcing a different option doesn't mean that they aren't still forcing the choice.

Re:You mean you can cripple it more?

[Pharmboy]

There's something very sad when comments I write shooting for funny get moderated insightful. =/

No, when you shoot for funny, and get insightful, thats ironic.

When you shoot for insightful, and get modded as funny, THAT is sad.

Market segmentation and price descrimination

[dyfet]

One hallmark of a true monoply is price descrimination and market segmentation. This is where a monopoly charges different prices to different classes of users for reasons that do not reflect actual cost differences and often where the same product is sold in different forms to create artifical price points and artificial or arbitrary market seperations. The key to price discrimination is to exploit the fact that different users have a different willingness and ability to pay for essentially the same goods and services. As such I simply view this as further evidence of monopolistic behavior, as if further evidence is even nessisary.

Re:But Wait...

[Pharmboy]

and no matter how much MS trims and cuts the price, Linux will still always be less than half the price ;) And no activation. And no locked into proprietary systems. And no peer to peer networking limitations (3 on home, 5 on pro). Oh, and almost no worms.

Depends on what's missing

[Valdrax]

None of the articles that I've read about this have said what functionality they're taking out of the system. For all we know, all the apps that we complain about (i.e. Explorer, Outlook, and Media Player) will be in the OS and other non-downloadable, core/system functionality will be removed (e.g. VPN, IPv6, and other networking protocols) or something else vexing but replaceable with third-party software.

In other words, it's perfectly possible that it will be both "anti-competitive" AND crippled.

MSFT must be scared

[rediguana]

This would set a nasty precident for MSFT, once one country has seen that MSFT may remove their global pricing, every country with a currency weaker than the USD will be clamouring for the same benefits. Guess its part of a larger trend away from US companies that need to earn in USD to survive. If you think about that, there are some nasty implications for the US ahead in international trade because of the relatively strong USD...

EVERYONE uses this strategy

[Killswitch1968]

Examples:
1. Senior rates and student rates. They are poorer and can't afford things like park admission. This is a way to get them to pay up.
2. Coupons. Lower income people will now shop at your store. Rich people generally have better things to do with their time than clip coupons.

Microsoft is not special, and you don't need to be a monopoly to 'exploit' this strategy.

Re:You mean you can cripple it more?

[Erwos]

I'm not sure whether you were ranting or being ignorant, so I'll assume someone else is ignorant and needs me to say the following:

This is done all the time. Take, for instance, the Quadro line of cards by nVidia. You are buying an intentionally crippled card everytime you buy a GeforceFX. Same hardware, sans a couple switched transistors and a slightly modified BIOS. In other words, they made the Quadro, and then crippled it to be the GeForce.

It's certainly not a tactic that only Microsoft employs. Indeed, most firms that sell both to the "individual consumer" and businesses do it. Singling out Microsoft as an evil corporation because they're employing intelligent (and in this case, non-monopolistic) business practices is stupid.

Basic economics. Literally, they taught it at the very lowest level economics course at my school.

-Erwos