Slashdot Mirror
Exchange Rates Spell High Prices for Windows 7 In the EU
CWmike writes "European customers will pay up to twice as much for Windows 7 compared with US users, even though the new operating system will ship without a browser in Europe. Some of the money Microsoft stands to make on the European editions of Windows 7 comes from the weak dollar. Last week, for instance, the dollar fell against the euro the most in a month, hitting $1.41 per euro. For example, Windows 7 Professional, the key retail edition for businesses, will sport a price tag of 285 euros, or $400.60, and £189.99, or $313.84, at Saturday's exchange rate. In other words, EU customers will pay twice the $199.99 U.S. price; U.K. buyers will pay 57% more. And depending on your view on bundling IE, Europe's customers will be paying more for less, with Microsoft's decision to yank IE8 from Windows 7 in an effort to head off EU antitrust regulators, who may still force the company to take more drastic measures."
I won't buy it, then.
Really, fuck US products. I don't need your music, software, cars, or internet.
In fact, that includes Slas[NO CARRIER]
Finally had enough. Come see us over at https://soylentnews.org/
In Australia, the price of Windows 7 is AU$200. The US equivalent is AU$60.
You do the math.
Yes, this is a big "f*** you" from Redmond.
AC
I've never ever bought a retail copy of windows. I've only met one person who actually has. Stop wasting our time and quote the OEM prices, because thats what everyone buys.
If the Euro has more buying power than the dollar (lets say it's double for ease of math), wouldn't the price of something be $10 in the US and €5 in Europe?
For some reason, pretty much everything in technology is assumed 1€=1$... at least ever since the dollar is weak. Poor Britons have it worse, because they often get 1£=1$
Try buying Apple hardware here... That hurts.... Smallest MacBook? 945€ In the US 999$ (which translates to 712€ at current rates)
Interestingly enough, when the dollar was strong against the Euro (e.g. 1 Euro = 0.8 US$), we did not have the reverse effect. At that time in Europe, Prices of goods from the US were just increased.
Pretty much the entire rest of the world got fucked over with Vista pricing too.. Here's how Gates weasel'd out of it @1:08: http://www.youtube.com/watch?v=mmd93lWbOsw
People actually pay for Windows?
Wow.
Microsoft actually wants me to leech this off of BitTorrent. There's no other explanation.
Well, wouldn't want to disappoint them, no? I was pretty surprised at how little I hate Windows 7. I was actually thinking of buying. But it seems my perfect track record of never paying for Windows will remain perfect.
I mean, think about it. You can get new machines for what? 500 Euros? Do they really think that a, almost, 60% bonus for the OS will fly? I realize that OEM deals will look decidedly different, but come on...
Everybody has the right to shoot himself in the leg, just don't moan when it hurts like a bitch. I wouldn't be surprised if I'll see a sudden rise in Windows' piracy rate or, even better, see more people switch to Ubuntu.
right...
There are other options these days.
I think you might have that a bit backwards. If .eu says that Microsoft isn't playing by their rules, and the prices go all askew, competitors will eat MS's market in that region. There's already been many stories about various European governmental entities using various Linux distros as a Windows replacement. It'd be great to have alternatives to Windows become the standard operating platform across an entire 1st world country.
However, at this stage piracy will still keep Windows in the dominant user position.
Usually the conversion rate is 1 USD is 1 Euro. For example, look at the prices for video games. A $60 game consts 60 euros. Even Valve applies this conversion rate in Steam, and Apple for their store. It's extra income for the company. And most customers don't mind that much.
Of course there are some companies that want even more, for example the Rockband game in europe was 250% the price compared to the US retail price. EA said this was due to higher shipping rates (it's not like the other plasic toys from China cost that much).
But I guess that Microsoft went the same way (or as a retaliation to the fines they got), because they don't even do the $1=1 euro conversion. I bet they Blame it on localization. I'm sure that costs 85 euro per copy.
There's a fair chance this will hurt MS, because their TCO just went up a lot.
It costs twice as much in Europe as in the USA.
Swedish plasma phys. PhD student; MSc EE; knows maths, programming, electronics; finance interest; seeks opportunities
How about Europe just prevent sale within the EU until it complies with the EU directive? How about instead of paying Microsoft Tax, EU subsidises educational and support forums for common Linux distributions? Spends the money MS gave them giving similar incentives as Intel was accused of to PC manufacturers to include and support Linux by default?
You think the US can hold MS afloat by itself?
Finally had enough. Come see us over at https://soylentnews.org/
If you don't like the price, then don't buy it.
Don't pirate it either. Use something else.
But don't pirate it. If you do, you're doing what Microsoft considers "the next best thing" - ignoring alternatives. Alternatives scare the piss out of Microsoft. Back when Microsoft didn't have a stranglehold on the market, people were happy enough pirating 95 and 98, while ignoring things like BeOS and OS/2 (both competitively priced and more powerful) and it suited Microsoft and Bill Gates just fine.^1 Both OS/2 and BeOS are gone from the market because of piracy's market distortion.
Hopefully Windows 7 will come with an even more strict WGA and OGA to extract more pain from consumers. Maybe they'll wake up.
--
BMO
1. Of course, Microsoft executives prefer that people buy, but theft can build market share more quickly, as company co-founder and Chairman Bill Gates acknowledged in an unguarded moment in 1998.
"Although about 3 million computers get sold every year in China, people don't pay for the software. Someday they will, though," Gates told an audience at the University of Washington. "And as long as they're going to steal it, we want them to steal ours. They'll get sort of addicted, and then we'll somehow figure out how to collect sometime in the next decade." http://articles.latimes.com/2006/apr/09/business/fi-micropiracy9
The EU as an entity has a yearly budget of around 140 billion Euros (~$200 billion) and that's not counting any of the individual states. I hardly think that a couple of hundred million from Microsoft is going to make such a huge impact financially that the EU is picking on them as a money-making exercise.
Any customer in the EU is free to purchase from UK retailers.
If Microsoft tries to prevent this they could be fined by the comission. (Happend before to VW and others.)
"pissing off a big corporation.. Europe, get ready to pay back the massive fines microsoft was forced to pay by European legislators. Bend over and take it."
An interesting post, however it has one slight flaw...You appear to be suggesting that the reason for the high price is the recent fine that was imposed on M$. It isn't. M$ has always ignored actual currency exchange rates and fixed its prices at a rate that is most favourable to itself. This is merely business as usual for M$.
"You really think that MS would be the one hurting if the EU prevented the sale of Microsoft software? How naive are you? Such a ban would last all of 15 minutes before panicked EU politicos apologized profusely, lifted the ban and resigned."
Hmmm
It would appear that you are the naive one. Expecting a politician to admit to, apologise for and resign over a mistake is stretching the bounds of credibility too far.
...really, the only reason 'IT' companies get away with it is... because we let them. Adobe nearly stated as much. See:
http://www.amanwithapencil.com/adobe.html
See also the 'spin' page for very common arguments (read: excuses) for why pricing in the EU (and other countries) is higher, along with debunking statements:
http://www.amanwithapencil.com/adobe_spin.html
I do have to admit that Adobe has since then adjusted pricing a bit more favorably... .. all non-parallel because their store gets confused when you are trying to see pricing for products in 2 different tabs.) ...but it's still a pretty good chunk above the U.S. pricing.
I don't have current numbers, only from half a year ago; no good, and comparing their store prices takes a good 2 hours just to navigate, make sure you select the correct product (English language), etc.
Well, if Exchange rates are the reason for the high price, why don't people purchase the thing without Exchange? It was a silly program anyway.
Ask me about repetitive DNA
The day I installed Ubuntu on my mum's computer (Hello Mum!) and then she proceeded to send emails, download a few images and do some searches, I knew Linux had reached maturity.
Linux may lack the marketing that both Microsoft and Apple have, but the word is spreading.
For example here in hte UK, for the first time I saw a Linux magazine in a local supermarket news stand (Sainsburys). Yeah, the same kind of place that sells TV magazines, PCWorld, MacWorld and all what would be considered broad hobbyist and popular interest publications. That is telling me that people actually risking money in the publishing business have identified a need, irrespective of Open Source politics.
At the same time a major local retailer (WH Smith) is now regularly stacking between 2 and 3 Linux magazines (Linux Format, Linux Magazine and/or Linux User) against normally only one OSX magazine.
So people actually doing business have detected that there is a swell of interest in Linux, that says more than anything Netcraft would report.
IANAL but write like a drunk one.
I am Spanish speaker, I have always prefered English localizations.
The reason is simple: one has to learn all the English lingo anyway, otherwise people like you and me would have to learn each other's language (Das passt nicht! )
I always felt at a disadvantage until I was able to use English in a regular manner.
IANAL but write like a drunk one.
US IT companies have almost always just changed the $ sign to a £ sign when they sell software here in the UK and made noises about "localisation costs" and "compliance costs"
Just business as usual, screwing as much profit out of the consumer as possible.
If the USD and the EUR were the same when the product was sold, and then the EUR goes down in price, I would agree with you.
But if the price according to the exchange rates at release differs %100, I believe it's a scam.
'For we walk by faith, not by sight.' II Corinthians 5:7
Windows pricing is exactly opposite as you describe, so you just reinforced the original posters point.
Simple:
How do you think they'll make pay the EU for the fines? By making windows more expensive!
Occam's razor does apply here.
Easy peasy.
Cheers,
I had tons of European customers always buying computer hardware. This was in Orlando, FL and they would go on vacation with their families and buy up everything because it was half the price it was in Europe.
The US dollar is cheap, and getting cheaper. Therefor, Windows over in Europe ought to be cheaper than it would have been, not more expensive.
This is my sig.