Microsoft Cuts Vista Price To $66 In China
narramissic writes "Microsoft this week cut the retail price of Windows Vista Home Basic in China by 67% — from 1,521 renminbi to 499 renminbi ($65.80). This is a steep discount compared to what users in the US and elsewhere are charged for the software. The reason for the price reduction? Battling piracy, of course. The new pricing 'narrows the price gap between original versions of Microsoft's software and pirated copies,' making it that much easier for consumers to 'do the right thing.'"
Newegg has "Home Basic" OEM for $90, and I doubt their prices are the cheapest around. And the retail is "only" $150. The price difference between vista basic in America and China is almost insignificant compared to the price difference between XP in America and China.
Depending on where you go for the data, that's still 1/2 to a full month's wages.
I'm very interested to discover how that price decrease decision was made. e.g. was it just not selling? Did the government "recommend" it?
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I read a very interesting article on Microsoft's policies in China in the latest Fortune magazine. They were talking about how for years Microsoft would try to battle piracy in China, and realized it was a losing battle, so they gave up. Instead, they opened up research institutes and kissed the ass of the government. This made the government more apt to enforce IP policy, and MSFT had a big hand in dictating it.
I remember reading that Windows + Office was about $3 US to students. In fact, in China, pirated Windows is often less expensive than Linux because Linux has more cds, which increases the cost dramatically.
Also interesting was when the interviewer asked Gates about China's policy on suppressing free speech, and Bill Gates had an internal BSOD and basically froze. After an uncomfortable period of time, the interviewer said "That's quite a pregnant pause" and Gates said "I don't think I want to answer that question."
The great thing about capitalism is that CEOs like Bill Gates who wants to make hand-over-fist in terms of money, doesn't have to give a rat's ass about basic human rights, he can choose to hide behind his business like a coward. Craig Mundie's answer was "I don't think that is my area of expertise." Cowards.
The difference in OEM and retail price is also pretty cool. I got Ultimate for $180 from Newegg because it was OEM. Retail would have cost be $400. I saved $210 because I didn't want a box (and because of the OEM licensing which really didn't change any of my plans about how I was gonna use Vista)
Some of us already do the right thing here, and the dollar amount is exactly 0.
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The currency collectively is called Ren Min Bi, which roughly translates to "The Peoples' Currency". Their dollar-like units are called Yuan. They also have a smaller denomination which I can't remember the name of currently, similar to our US cents. Collectively, both are referred to as Ren Min Bi.
Average income in Beijing is 15,600 RMB (chinese dollar) per year. That's 1300 RMB per month. With Vista at 500 RMB that's a good chunk of change. Even Beijing residents with a University degree only averaged 3,000 RMB per month.
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In the US, average income is $36,000 per year. Or $3,000 per month. Vista would have to cost ovder $1,100 to take up as great of a part of our income.
Note that the original price (1500 RMB) was more than one months salary for the average employee in Beijing.
If Vista cost us $1,100 I can guarantee it would be pirated to a much greater degree.
http://ask.yahoo.com/20040518.html
http://www.chinadaily.com.cn/english/doc/2005-02/