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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.'"

39 of 260 comments (clear)

  1. Yeah, but everyone steals Ultimate.... by tjstork · · Score: 5, Insightful

    IT's silly, why pay $66 bucks for a copy of watered down Dista when you can steal Ultimate? I mean, if you are in a country that has no IP enforcment, why not just steal the best one?

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    1. Re:Yeah, but everyone steals Ultimate.... by hax0r_this · · Score: 2, Informative

      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.

    2. Re:Yeah, but everyone steals Ultimate.... by insertwackynamehere · · Score: 2, Informative

      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)

    3. Re:Yeah, but everyone steals Ultimate.... by Anonymous Coward · · Score: 2, Funny

      Don't you mean Ulimate and not Ultimate?

    4. Re:Yeah, but everyone steals Ultimate.... by kimvette · · Score: 3, Insightful

      Why? The $66 version comes with extra features, such as regularly phoning home to Microsoft to send information about usage patterns and installed software, while presumably the pirated/hacked version will not. How's that for the value of being a paying customer?

      Okay, I admit I set up a straw man there, but I couldn't resist. I'm not making a serious point here, just a cynical comment.

      --
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    5. Re:Yeah, but everyone steals Ultimate.... by misleb · · Score: 2, Insightful

      Also, $66 is still pretty damn expensive for most Chinese, AFAIK. So even if they wanted to buy the $66 version, I doubt they could realistically afford it.

      The nice thing about software though is that you can charge whatever you want for it and still make a profit. That is, if there is a difference between selling it for cheap and not selling it at all. Expect to see further price cuts from Microsoft.

      -mathtew

      --
      "THERE IS NO JUSTICE, THERE IS ONLY ME." -Death
    6. Re:Yeah, but everyone steals Ultimate.... by somersault · · Score: 2, Funny

      "my plans about how I was gonna use Vista"

      Hopefully these plans included a large pile of very dry wood, some gasoline, and a shaman head-dress?

      --
      which is totally what she said
    7. Re:Yeah, but everyone steals Ultimate.... by Endo13 · · Score: 2, Insightful

      Now that sounds like a copy of Vista I might actually consider for a trial run.

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    8. Re:Yeah, but everyone steals Ultimate.... by Adambomb · · Score: 2, Funny

      Arise system! System arise!

      --
      Ice Cream has no bones.
    9. Re:Yeah, but everyone steals Ultimate.... by insertwackynamehere · · Score: 2, Interesting

      Lol no :) I'm installing it with Parallels on my new Macbook I'm getting soon in the mail. Along with Ubuntu. Mac OSX, Windows Vista Ultimate and Ubuntu 7.04 all running side by side. I've dreamed of running every mainstream OS multiboot since 9th grade. Now I'm gonna be a Freshmen in college and I can run every mainstream OS at the same time! When I was in 9th grade, you wouldn't have been even able to install OSX on a PC. Now everything is moving together :) I am so happy Mac's are now Intel based.

  2. More Piracy? by stars_are_number_1 · · Score: 5, Insightful

    Does this mean we need more piracy in the US to bring the price down?

    1. Re:More Piracy? by TubeSteak · · Score: 4, Insightful

      Does this mean we need more piracy in the US to bring the price down? I doubt that would work.
      Piracy is incredibly pervasive in Asia
      Microsoft is using the carrot, because they don't control the stick.

      In the USA, Microsoft has the stick firmly in hand (in the form of lawsuits, the BSA, politicians, and law enforcement) and only occassionaly dangles carrots (in the form of discounts to specific groups).
      --
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    2. Re:More Piracy? by QuietLagoon · · Score: 5, Insightful
      Does this mean we need more piracy in the US to bring the price down?

      It does show that a monopoly results in consumers paying a ridicuously high price for the merchandise.

    3. Re:More Piracy? by SanityInAnarchy · · Score: 3, Insightful

      Right, and it does show that they can compete with free.

      It makes one wonder, if Linux and OS X were more successful, would Windows even cost $50 in the US?

      --
      Don't thank God, thank a doctor!
    4. Re:More Piracy? by houghi · · Score: 2, Insightful

      Why piracy? There is another way to show you do not agree with their pricing without breaking the law. Just do not buy their products and do not use the pirated version either.

      You do not like brand X doing business in ways you dislike? Do not use those products. Do not like the *AA? Don't listen to their music. Do not like the sportsbrand having sweatshops? Don't wear their clothes. Don't like the pricing of software? Don't use it.

      Think to yourself what you would think software is worth to you, download any open Linux distribution you desire and then donate the money you thought it was worth to you to any open source project accepting money.

      THAT would bring the price down to what YOU think it is worth RIGHT NOW.

      --
      Don't fight for your country, if your country does not fight for you.
  3. Relative to Income by Anonymous Coward · · Score: 4, Insightful

    So what is that, like 2 months of a person's income there?

    Reduce it to two or three day's income like it is here for the average person. Then you'll hit the point where they can afford it instead of stealing it.

    1. Re:Relative to Income by Spudtrooper · · Score: 3, Funny

      What, so they can run it on their $199 PCs?

  4. oblig. "Stalin" quote by syntaxeater · · Score: 5, Funny

    The piracy of one is a tragedy. The piracy of millions is a discount.

  5. So why not a deal for Americans, EU, Candians...? by WindBourne · · Score: 2, Interesting

    The real question is why will users allow this? And can businesses and gov. make use of this

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  6. Re:So, logically, we should all pirate software by Walpurgiss · · Score: 5, Insightful

    MS does it in China; yet here in the western world, the software companies use piracy as an excuse to need to raise prices. (To recoup alleged losses from e-shrink)

  7. Still, Roughly 1/2 Avg or More Monthly Wages by asphaltjesus · · Score: 4, Informative

    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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  8. So how long until gray market copies appear? by Registered+Coward+v2 · · Score: 3, Interesting

    At that price, assuming it is the same as other versions sold elsewhere, it is almost at a point where bulk purchasing and shipping make it worthwhile to sell on the gray market.

    --
    I'm a consultant - I convert gibberish into cash-flow.
  9. Re:Let's follow their lead by cashman73 · · Score: 4, Insightful

    I hate to say it, but,... even "pirated Windows Vista" is still "Windows Vista",... you're better off sticking with Windows XP, ... or MacOS X ... or Linux.

  10. Windows is cheaper than Linux in China by CPE1704TKS · · Score: 5, Informative

    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.

  11. Re:Do the right thing ? by andrewd18 · · Score: 2, Funny

    But the distro only contains free and open-source pirates. We can't have any of this proprietary pirate bull crap.

  12. Interesting pricing, for sure by TheAxeMaster · · Score: 2, Interesting

    I know it is the "less money is better than no money" mantra that they are trying to apply, but I still find it fascinating that a relatively non-free market is getting a better price for the same product than a supposedly free market like the US and European countries. It looks like "illegal" activities can be an artificial competitor when no direct competitor exists. The question is, will people in China buy it, even at this price? I really doubt it. I wonder what the EULA looks like...

    1. Re:Interesting pricing, for sure by Mistlefoot · · Score: 5, Informative

      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.

      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/2005-02/2 2/content_418101.htm

    2. Re:Interesting pricing, for sure by HungWeiLo · · Score: 2, Insightful

      If everyone had to opt-in to pay an extra for $90 every time they bought a computer at Best Buy, you'd see a lot of piracy too.

      --
      There are a huge number of yeast infections in this county. Probably because we're downriver from the bread factory.
  13. Cheaper, but with modified content? by Sponge+Bath · · Score: 2, Funny

    Vista Ethylene Glycol Edition

  14. The good side of Piracy... by tgatliff · · Score: 4, Insightful

    So are we saying there is a good side to piracy? Shocking!! You mean the music industry could have just reduced their prices to compete with piracy instead of sueing every single person?

  15. Re:chinese online vendors == $$ by lilomar · · Score: 4, Funny

    Maybe the money saved isn't enough for vista basic users to learn Chinese?

    Just a thought.

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  16. Re:chinese online vendors == $$ by fullmetal55 · · Score: 3, Funny

    hey maybe thats why chinese became so popular in the firefly future...

  17. Re:Values approaching free? by mhall119 · · Score: 3, Informative

    Some of us already do the right thing here, and the dollar amount is exactly 0.

    --
    http://www.mhall119.com
  18. Re:Let's follow their lead by veganboyjosh · · Score: 5, Funny

    that's why i pirate linux.

  19. Retaliation by SnarfQuest · · Score: 4, Funny

    Are we sending Windows to China in retaliation for the lead-paint and poisonous pet food that China is shipping to us?

    --
    Who would win this election: Andrew Weiner vs Andrew Weiner's weiner.
  20. Re:Still more expensive by Anonymous Coward · · Score: 2, Insightful

    Microsoft was always been weak on piracy prevention. They've always known it helps them to solidify their stranglehold on the market. But they'd rather have the best of both worlds:

    Posturing about how piracy is wrong and illegal. Threaten. Remind people of the legal consequences, then drop prices. Most will continue to pirate regardless, some will be frightened into/enticed to buy a legal copy. They srengthen their market dominance AND sell their O/S. Perfect. It's a win-win (pun intended) situation for Microsoft.

    Honestly, when was the last time you saw Microsoft going after end users like the *IAA does? (SCO-related conspiracy theories aside).

    It's very similar to how one needs to protect their patents to retain them; Microsoft needs to at the least pretend that they're losing out to piracy, and pretend that they're trying hard to stop it. Otherwise, can you imagine the anti-trust allegations?

  21. Re:Still, Roughly 1/2 Avg or More Monthly Wages by colmore · · Score: 2, Interesting

    Talking about "average wages" in the industrializing world is pretty misleading.

    China is a third world country that contains a first world country. Vista, computers, and internet access is being sold to the first worlders. I've seen $300 / month quoted as the base starting salary for white collar work. Which puts a Chinese office drone at about 1/4 what a US temp staffer makes. This seems about right, given that the kind of consumer price disparities here are primarily the results of China's heavy hand in their own currency market. The government keeps the local currency artificially weak to make sure that outside investment remains dirt cheap.

    Now according to basic economic theory, this shouldn't work. It doesn't cost (significantly) less to market a consumer product to the Chinese middle class than anyone elses, so how can they support comparable standards of living with such weak currency, and how does the currency not strengthen as more imports and local consumer spending occurs? The Vista pricing is a good illustration of why basic economic theory is frequently inadequate to describe the real world. Most consumer goods simply don't behave like widgets or pork bellies, advertising and IP law (among many other forces that prevent commoditization of goods) prevent market effects and allow large players like Microsoft and the Chinese Government to keep prices of goods at wildly different levels in some parts of the world rather than others.

    --
    In Capitalist America, bank robs you!
  22. Re:So if I purchase over the internet... by AmiMoJo · · Score: 2, Insightful

    How is buying a legitimate licence which activates and passes all Microsofts checks copyright infringement?

    Perhaps it could be a licencing issue, if the licence specifically says for use with a Chinese OS only. However, last time I checked and English Vista pack, it didn't say anything about that.

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  23. Because stealing is a crime by jesterzog · · Score: 4, Insightful

    I mean, if you are in a country that has no IP enforcment, why not just steal the best one?

    Perhaps because in China, stealing is still treated as a serious crime, and is often (I think) enforced quite heavily. A better course of action for people in China would be to infringe on the copyright, which is not seriously enforced.

    Unless, of course, you've fallen into the semantics of the stop-copyright-infringement lobby groups, who would love it if everyone saw the complicated artificial legal definition of copyright infringement as being equivalent to horrible crime of stealing. In that case, yes, they should steal the best one.