MS Plans Low-Cost Windows for Brazil

Atryn writes "According to this C|NET article, Microsoft is planning to release its XP Starter Edition in Brazil. Could the pressure of Brazil's overtures toward Linux be forcing Microsoft Brasil to compete?"

Comments

What is Microsoft thinking?

[gangofwolves]

According to the CIA World Factbook, Brazil has a per capita GDP of $8,900. US per capita GDP is $37,800 (all US-$, all figures 2003 est.).

And this doesn't even take distribution of wealth into account. According to the above mentioned source 25% of Brazil's population are below the poverty line. In reality, it's much more (they are notorious for not keeping track of economical data or even just plain making stuff up).

So you have a small upper class, a small middle class, a huge blue collar working class (with many people out of work) and a lot of people unaccounted for.

If you're living on $741 a month, do you really spend $36 on a license you essentially don't need (since there's no enforcement in Brazil). Also, consider that those $36 are 20% of your monthly income (not of your monthly disposable income).

I don't really get who the folks at Microsoft think their target audience is. The upper class can afford XP Pro/Home licenses. They've either already purchased those (probably OEM licenses) or simply don't care. Anyone outside that demographic just won't be able to afford a Starter license, even if they wanted to.

Re:Starter Edition?

[Ruke]

Look at the system requirements:

* Desktop PC with a Celeron, Duron, Geode, Sempron or similar processor; 233 MHz processor clock speed required and 300 MHz or higher recommended
* 64 MB of RAM; 128 MB of RAM maximum
* 1.5 GB of available hard disk space, 40 GB maximum hard disk space
* CD-ROM or DVD drive
* Super VGA 800x600 resolution video adaptor and monitor
* Microsoft Mouse or compatible pointing device

Microsoft also doesn't want you running this if you don't have a ****-box PC. 128 RAM max?

Price Discrimination Maximizes Profits

[CodeBuster]

If Microsoft does indeed have monopoly power (e.g., they face a downward sloping demand curve) then they would maximize their profits by price discrimination. Price discrimination means charging each group of customers the maximum amount that they are willing or able to pay for the product or service. This is the winning strategy for any monopoly assuming that they are not legally restricted from price discriminating. Thus, this type of behavior by Microsoft is not surprising, but rather entirely expected as per the textbook examples of unrestricted monopolies.

Mod parent down.

[leathered]

This idiot 'redswinglinestapler' is copying comments from previous articles and posting them verbatim. Please add to your foes list and mod the shithead into oblivion whenever you get the chance.

Example, here's a comment I posted.

Spot the difference

For more incriminating evidence check out the user page