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Exchange Rates Spell High Prices for Windows 7 In the EU

Posted by timothy on from the congratulations-on-choosing-the-executive-version dept.

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."

19 of 548 comments (clear)

  1. Fine by L4t3r4lu5 · · Score: 5, Funny

    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/
    1. Re:Fine by L4t3r4lu5 · · Score: 5, Funny

      I had the RC the day after release :) I'm very happy with the product, but not £189.99 happy. Especially not if the very same product is £60 - £70 cheaper in the US.

      Or are MS suggesting that it costs that much to spell words like "colour" and "flavour" correctly and swap the primary definition for "Hood" and "Bonnet" around? ;-)

      --
      Finally had enough. Come see us over at https://soylentnews.org/
    2. Re:Fine by h4rm0ny · · Score: 5, Informative


      It makes sense. They don't really lose anything as this is prior to you actually being able to buy it. Microsoft seem pretty confident that their new system is something to be proud of, so they get to show it off in the most ballsy way possible - by letting you actually have a copy and try it out for an entire year. The Vista criticism is now somewhat mitigated by people being able to get a copy of Windows 7 to install right now. Microsoft benefit from the "thousand eyes" testing principle of GNU/Linux. And when the time comes round that it is available to buy, you have an inducement in that its already installed and in use. There are also Advance Order deals available right now that let you buy it for half-price. Also, unlike the ridiculous number of different Vista versions there were, Windows 7 (ignoring server and mobile variants) comes in three flavours: Home, Professional and Ultimate which are easily differentiated by a short feature list of extras. Home Edition isn't the hamstrung version that it was with XP or Vista. It only lacks a couple of features that pros really would want, and Ultimate only adds things that really sound like the most exclusive features (e.g. the on and off-disk encryption utilities). So you aren't forced to buy some "deluxe" system just for basic features you'd expect.

      I think Microsoft are being "generous" for very sound financial reasons. They reckon people will try this and actually want to buy it. I'm a Gentoo and Kubuntu user most of the time, but credit where its due.

      --

      Aide-toi, le Ciel t'aidera - Jeanne D'Arc.
    3. Re:Fine by Jurily · · Score: 5, Interesting

      I had the RC the day after release :) I'm very happy with the product, but not £189.99 happy. Especially not if the very same product is £60 - £70 cheaper in the US.

      How does that even work? If the USD is low, shouldn't that make american products cheaper?

    4. Re:Fine by Anonymous Coward · · Score: 5, Insightful

      In IT and a few other industries they dont bother with complicated things like exchange rates so :

      $199 == £199 == â199

      the result of this is that we get really ripped off on some products.

    5. Re:Fine by Anonymous Coward · · Score: 5, Insightful

      How does that even work? If the USD is low, shouldn't that make american products cheaper?

      The usual answer is "customers want a stable price for software, we don't bother tracking the exchange rate on a day by day basis." In the EU they have fixed prices in euros, pounds whatever.

      A weak dollar means the nominal dollar price is higher. They could price lower but they are not in the business of selling at cost+n%, they are business of pricing at whatever the local market will bear. That doesn't change much with the exchange rate.

  2. It's not only Europe by Anonymous Coward · · Score: 5, Informative

    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

    1. Re:It's not only Europe by TheRaven64 · · Score: 5, Informative

      Or use something else. Seriously. Pirating Windows just helps Microsoft by promoting network effects, letting device and software makers get away with only supporting Windows and making the next version of Windows more attractive to buyers. If you think Windows is too expensive don't buy it. Either stick with the old version, or migrate to something else.

      --
      I am TheRaven on Soylent News
  3. OEM Prices Please by Anonymous Coward · · Score: 5, Interesting

    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.

  4. Huh? by Culture20 · · Score: 5, Insightful

    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?

    1. Re:Huh? by Kokuyo · · Score: 5, Insightful

      Indeed. Globalisation makes source material cheaper for companies and end-products more expensive for consumers while the same consumers at the same time have to be more accepting of corporate bullshit, lesser quality and have to be flexible when it comes to their jobs.

      Meanwhile, consumers are NOT allowed to profit from globalisation themselves. That would defeat the whole idea of carving more money out of your customers.

  5. But it never works the other direction by AtomicJake · · Score: 5, Insightful

    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.

  6. The same for Linux by Bromskloss · · Score: 5, Funny

    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
  7. Re:Not surprising by beelsebob · · Score: 5, Informative

    Not forgetting that the EU price includes sales tax, while the US one doesn't, lets add for example belgium's 21% sales tax -- that makes the US price actually â861. Still not a great deal in the EU, but not as royally shafted as you made it look.

  8. Hey Guys... by bmo · · Score: 5, Insightful

    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

  9. Why the UK/EU price difference? by sulimma · · Score: 5, Interesting

    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.)

  10. Can't rape the willing... by Animaether · · Score: 5, Interesting

    ...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...
    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. .. 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.

    1. Re:Can't rape the willing... by David+Gerard · · Score: 5, Interesting

      At one stage it was actually cheaper to buy a return plane ticket from London to New York and buy CS3 there than to buy it in the UK.

      --
      http://rocknerd.co.uk
  11. Guys am I the only one to see this? by emanem · · Score: 5, Insightful

    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,