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Windows Operating Systems Software Microsoft The Almighty Buck

Exchange Rates Spell High Prices for Windows 7 In the EU 548

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."
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Exchange Rates Spell High Prices for Windows 7 In the EU

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  • OEM Prices Please (Score:5, Interesting)

    by Anonymous Coward on Monday June 29, 2009 @05:18AM (#28511453)

    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.

  • by Anonymous Coward on Monday June 29, 2009 @05:19AM (#28511473)

    It goes to show how far the market for personal computer operating systems is owned by one firm. It is amazingly hard to sell commodity software yet Microsoft manage to do it, at the prices it chooses, because it has no effective competition. Admirable, if slightly freaky (it makes me think of someone selling 128MB memory cards for a premium).

  • Well, whaddaya know (Score:3, Interesting)

    by Kokuyo ( 549451 ) on Monday June 29, 2009 @05:23AM (#28511503) Journal

    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...

  • Not a problem really (Score:2, Interesting)

    by geegel ( 1587009 ) on Monday June 29, 2009 @05:26AM (#28511523)
    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.
  • by L4t3r4lu5 ( 1216702 ) on Monday June 29, 2009 @05:43AM (#28511635)
    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?
  • Re:Fine (Score:5, Interesting)

    by Jurily ( 900488 ) <jurily&gmail,com> on Monday June 29, 2009 @05:54AM (#28511709)

    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?

  • by sulimma ( 796805 ) on Monday June 29, 2009 @06:02AM (#28511753)

    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.)

  • Re:Huh? (Score:4, Interesting)

    by kukulcan ( 1440401 ) on Monday June 29, 2009 @06:23AM (#28511873)
    I fail to see the link between a "weaker dollar" and higher prices in the EU. Actually, it should work the other way - a weaker dollar should lead to *lower* prices in the EU, in Euros. Anyway, i never understood the pricing of some companies - MS, Apple, Sony - as they seem to assume that 1$ = 1 = 0.75£ or something. Economically this just doesn't make sense. The prices should reflect the costs, which in these companies are in different currencies. The prices should then be ajusted to reflect the division of the costs in these currencies, and some hedging should be done to counteract exchange rate risk. Just assuming a fixed exchange rate (one which is wrong...) just doesn't make sense to me. I would love to see the justification for this, including why the prices in EU and Britain always seem to be higher than in the US or Japan.
  • Re:Fine (Score:1, Interesting)

    by cheekyboy ( 598084 ) on Monday June 29, 2009 @07:04AM (#28512107) Homepage Journal

    EU/UK is subsidising the US prices because americans are soo poor.
    American financial people think foreigners are as dumb as americans so often like to
    spruce up prices. If they just dared really dared to price it right, they would see higher sales.

    So yeah, if you want Win7, go to a chineese side street small retailer and get an OEM dvd thats legit
    and probably only $49.

    Full retail box price? Only utter morons pay for that. Learn how to use google simpletons.

  • by Animaether ( 411575 ) on Monday June 29, 2009 @07:08AM (#28512135) Journal

    ...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 [amanwithapencil.com]

    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 [amanwithapencil.com]

    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.

  • by ScaledLizard ( 1430209 ) on Monday June 29, 2009 @07:22AM (#28512211)

    Any customer in the EU is free to purchase from UK retailers.

    That is a good option for movies and games, that usually suffer from translation, but I prefer having my operating system speak to me in German.

  • by jotaeleemeese ( 303437 ) on Monday June 29, 2009 @07:40AM (#28512327) Homepage Journal

    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.

  • by jotaeleemeese ( 303437 ) on Monday June 29, 2009 @07:44AM (#28512343) Homepage Journal

    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.

  • Re:Fine (Score:2, Interesting)

    by Caetel ( 1057316 ) on Monday June 29, 2009 @07:45AM (#28512363)
    Microsoft don't even bother localising the software the the UK market, it's the exact same software as the US version. http://blogs.msdn.com/oldnewthing/archive/2009/06/08/9705183.aspx [msdn.com]
  • 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.
  • by Tony Hoyle ( 11698 ) <tmh@nodomain.org> on Monday June 29, 2009 @08:56AM (#28512907) Homepage

    Yeah I was going to buy CS3 for my wife who has dreams of making money in web design. Then I found out the cost... *then* I found out the cost in the US and realized it would be far cheaper to fly to the US, buy it there and fly back. We dropped the idea..

  • Re:Fine (Score:4, Interesting)

    by JediTrainer ( 314273 ) on Monday June 29, 2009 @09:05AM (#28512995)
    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.


    Try living in Canada, where

    $199 USD == $350 CAD, regardless of the exchange rate (even during the periods that the Canadian dollar was worth more than the US)
  • by Blue Stone ( 582566 ) on Monday June 29, 2009 @09:46AM (#28513349) Homepage Journal

    It would be nice if the EU, instead of bitching about MS including Internet Explorer in their OS (leading to the ludicrous situation where they omit to include ANY browser with the win7 E version) did something about this blatant price gouging of european consumers.

    If this isn't monopoly abuse, I don't know what is.

  • Re:Fine (Score:2, Interesting)

    by corbettw ( 214229 ) on Monday June 29, 2009 @10:06AM (#28513535) Journal
    This seems ripe for arbitrage. Why wouldn't someone just buy a metric (of course!) shitton of licenses in the US, then sell them in the EU at less than the minimum-advertised price (MAP), but still greater than the price they bought them for? It's not like Microsoft could stop you even if they wanted to.

    Oh wait, that's right, the EU has decided that MS can't sell the exact same product in the EU as in the US. So now there's no way for someone to pull the kinds of shenanigans I'm describing. Once again, a government bureaucrat does an excellent job of protecting a corporation's interests and screwing over the consumer. Yeah bureaucracy!

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