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Windows Vista retail doomed unless Microsoft cuts prices?

by Bob Crabtree on 21 January 2007, 14:27

Tags: Microsoft (NASDAQ:MSFT)

Quick Link: HEXUS.net/qahq3

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Email exchange and final thoughts


Our email to Microsoft said,

Is Microsoft going to be offering any of the deals in the UK/EU/elsewhere that it announced for US/Canada this week?

These were announced in this press release:
Microsoft Unveils New Ways for Consumers to Get Windows Vista

I ask because, of course, the scheme which MS calls Family Discount Rewards Multiple-PC Households does, at least, make the prices of all versions of Vista look at bit more reasonable in the USA and Canada since it lets residents of those countries buy two further copies of the versions they own for just $49.99 each (which, by my reckoning - and even when I add VAT - comes up to an equivalent of just £29.76).

Whatever the case, can you please advise me of the VAT-inclusive recommended prices that will prevail in the UK when Vista retail versions are launched on Jan 30?

I'm presuming that these won't be any different from those already announced - not that anyone at HEXUS (the UK's biggest PC hardware technology site) has received any such info from yourselves.

But I simply can't believe that a company as smart and experienced as Microsoft is going to be so unwise as to launch at those prices, so feel I need to ask before publishing anything else about the pricing of Vista and about the disparity between the high prices in north America and fantastically high prices everywhere else in the world, a disparity that is, of course, made worse in the UK by the very weak dollar and the relatively strong pound.

My general thesis in all this is that - at the current announced prices - Microsoft is going to find that Vista retail will be an almighty flop, at home and abroad, and I'm really looking for someone of substance at Microsoft to say something that might make us at HEXUS and our near 2 million readers believe that this might not be the case.



Here's what Microsoft said in reply,


I can confirm that the Family Discount will only be available to customers in North America and Canada at present.

The program is time-limited, running from General Availability of Windows Vista (January 30, 2007) through June 30, 2007. As the program progresses, Microsoft will evaluate the results and determine whether to continue or modify the program.

I don’t have any information about pricing at present [that's UK pricing - Bob C], but will let you know as and when I receive this.

Please find some more information regarding pricing below. This is attributable to a Microsoft Spokesperson.

“Pricing does vary by region and is dependent on a variety of specific factors including, but not limited to exchange rate, local taxes, duties, local market conditions and retailer pricing decisions.”



So, what's to become of Vista retail?

Well, you'll not be surprised to learn that we think it's going to bomb at its launch unless prices are massively cut in the next 11 days.

And if Vista doesn't come in on launch-day at far lower prices than anticipated, Microsoft is going to have to massively cut prices later anyway and look very silly into the bargain.

Hopefully, though, the price cuts will come ahead of launch day or very soon after.

We've spent a lot of time with the late betas of Vista and, truth is, we like the operating system a lot. Vista in its retail form is far too good to die but, unless Microsoft acts decisively and quickly that's exactly what we expect will happen.

Check out on page three the Microsoft press release that set off this diatribe - you'll find that's led by info about a new buy-by-download method we didn't have the willpower to even mention - then share your thoughts in the HEXUS.community.

HEXUS.links

HEXUS.community :: discussion thread about this article

HEXUS.lifestyle.headline :: Windows Vista to be delayed again, according to MS (yeah, it looks like we were wrong!)
HEXUS.lifestyle.headline :: Further delay for Vista consumer launch looks ever more likely (and here, too)
HEXUS.lifestyle.headline :: Amazon lists prices & Jan 30 availability for Windows Vista

HEXUS.opinions :: Microsoft Vista EULA spits in the eye of self-builders worldwide
HEXUS.hardlines :: PC enthusiasts' clamour gets major change in Windows Vista EULA
HEXUS.hardlines :: Outrage at UK/US Vista price difference
HEXUS.hardlines :: Microsoft proud to hand over Vista 'features' early (but you'll laugh at this one!)


External.links

Microsoft USA - Vista home page
Microsoft USA - Windows Vista Family Discount (not live as of Jan 19, 07)