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Comments: 548 +-   Exchange Rates Spell High Prices for Windows 7 In the EU on Monday June 29, @04:13AM

Posted by timothy on Monday June 29, @04:13AM
from the congratulations-on-choosing-the-executive-version dept.
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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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  • Fine (Score:5, Funny)

    by L4t3r4lu5 (1216702) on Monday June 29, @04:16AM (#28511437)
    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]
      • Re:Fine (Score:5, Funny)

        by L4t3r4lu5 (1216702) on Monday June 29, @04:30AM (#28511549)
        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? ;-)
        • Re:Fine (Score:5, Interesting)

          by Jurily (900488) <jurily AT gmail DOT com> on Monday June 29, @04:54AM (#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?

          • Re:Fine (Score:5, Insightful)

            by Anonymous Coward on Monday June 29, @05:00AM (#28511737)

            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.

            • Re:Fine (Score:5, Informative)

              by jimicus (737525) on Monday June 29, @05:33AM (#28511931) Homepage

              Photography stuff is even worse. It's not unknown to find a DSLR will be priced at:

              $799 = £899 = â950

                • Re:Fine (Score:5, Funny)

                  by ScentCone (795499) on Monday June 29, @08:37AM (#28513261)
                  $799 = £899

                  What country uses A-with-a-hat-on pounds?


                  Those of us in the tiny mountainous principality of Asshatteryburg, you insensitive clod!

                  It was originally "Hapsburg," but you know what happens when stuff gets written down without a spellchecker over the years.
            • by Animaether (411575) on Monday June 29, @06:08AM (#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.

            • Re:Fine (Score:4, Insightful)

              by nbharatvarma (784546) on Monday June 29, @06:17AM (#28512195)
              Heh. Interestingly they seem to do this only for currencies that have higher current value than the Dollar.. I dare them to make $199 to INR 199 :)
              $1 is roughly INR 50
            • Re:Fine (Score:4, Interesting)

              by JediTrainer (314273) on Monday June 29, @08:05AM (#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)
          • Re:Fine (Score:5, Insightful)

            by Anonymous Coward on Monday June 29, @05:11AM (#28511801)

            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.

      • Re:Fine (Score:5, Informative)

        by h4rm0ny (722443) <h4rm0ny AT tarddell DOT net> on Monday June 29, @04:40AM (#28511617) Journal

        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.
  • It's not only Europe (Score:5, Informative)

    by Anonymous Coward on Monday June 29, @04:16AM (#28511441)

    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

    • Re: (Score:3, Insightful)

      Oh well, we'll just leech it from http://thepiratebay.org/ [thepiratebay.org]

      • by TheRaven64 (641858) on Monday June 29, @05:34AM (#28511945) Homepage Journal
        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.
        • Re: (Score:3, Insightful)

          by Anonymous Coward

          Pirating Windows just helps Microsoft

          I think the best thing that could happen to Linux and other alternative operating systems would be if Microsoft made it absolutely impossible to pirate Windows. It would be very interesting to see the result of that.

          (I'd like to see the same thing happen with Photoshop too. I have a feeling Gimp development would get quite a boost as a result. So many people use Photoshop over alternatives just because it's so easy to get a pirate copy.)

        • And I don't care who's around me, I could really give a fuck

          It's 2009 on the Internet. Nobody here is bothered by the use of the word "fuck". But we object to your incorrect use of "could really give a fuck". It's "couldn't really give a fuck". Honestly. What is it with Americans and their blindspot for this phrase? How much sense does it make to say "I could care less" in a dismissive way? You're saying that you do care with this phrase when what you're trying to say is that you don't: i.e. that you couldn't care less. HTH :)

  • OEM Prices Please (Score:5, Interesting)

    by Anonymous Coward on Monday June 29, @04:18AM (#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.

    • except for the 50% of people who don 't qualify for the OEM/ education versions.

      If your OEM and your installing it on non authorized machines then you will be sued by MSFT it is just a matter of time until they find out.

  • Huh? (Score:5, Insightful)

    by Culture20 (968837) on Monday June 29, @04:19AM (#28511463)
    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?
    • Re:Huh? (Score:4, Insightful)

      by Winckle (870180) <mwinckle@nOsPAM.gmail.com> on Monday June 29, @04:20AM (#28511479) Homepage

      You clearly don't understand Globalisation.

      • Re:Huh? (Score:5, Insightful)

        by Kokuyo (549451) on Monday June 29, @04:26AM (#28511525)

        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.

      • Re:Huh? (Score:4, Funny)

        by L4t3r4lu5 (1216702) on Monday June 29, @04:33AM (#28511569)
        Globalisation is all about the customer, and their position with regard to the market.

        For an example, take a capital letter L, invert it, and place it next to a lower-case o. The customers is the L. For added realism, put a capital F behind the inverted L and keep adding and deleting a single space between them.
    • Re:Huh? (Score:4, Interesting)

      by kukulcan (1440401) on Monday June 29, @05:23AM (#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.
  • by AtomicJake (795218) on Monday June 29, @04:21AM (#28511489)

    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.

  • by benbread (910501) on Monday June 29, @04:21AM (#28511495) Homepage Journal
    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 [youtube.com]
  • by Fross (83754) on Monday June 29, @04:22AM (#28511497) Homepage

    People actually pay for Windows?

    Wow.

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

    by Kokuyo (549451) on Monday June 29, @04:23AM (#28511503)

    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...

    • by dnaumov (453672) on Monday June 29, @05:27AM (#28511891)

      Microsoft actually wants me to leech this off of BitTorrent. There's no other explanation.

      I am confused. Where does this feeling of entitlement to someones product come from? If you don't agree with their pricing for Windows 7, you are free to use the older version if you have it or switch to any of the many different free operating systems available.

  • by budword (680846) on Monday June 29, @04:31AM (#28511555)

    There are other options these days.

  • 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.

  • by Bromskloss (750445) on Monday June 29, @04:42AM (#28511627)

    It costs twice as much in Europe as in the USA.

  • Hey Guys... (Score:5, Insightful)

    by bmo (77928) on Monday June 29, @04:53AM (#28511699)

    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 [latimes.com]

  • by sulimma (796805) on Monday June 29, @05:02AM (#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.)

      • by jotaeleemeese (303437) on Monday June 29, @06:44AM (#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.

  • by gringer (252588) on Monday June 29, @06:10AM (#28512151)

    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.

  • by Pop69 (700500) <billy&benarty,co,uk> on Monday June 29, @06:59AM (#28512449) Homepage
    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.
  • by emanem (1356033) on Monday June 29, @07:25AM (#28512617) Homepage
    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,
  • 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.

    • by White Flame (1074973) on Monday June 29, @04:37AM (#28511593)

      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.

    • Re: (Score:3, Interesting)

      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:Not surprising (Score:5, Informative)

      by beelsebob (529313) on Monday June 29, @04:50AM (#28511675)

      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.

    • Re: (Score:3, Informative)

      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.

    • by MrKaos (858439) on Monday June 29, @05:26AM (#28511883) Journal

      or, even better, see more people switch to Ubuntu.

      A neighbour asked if I would build him a grunty machine to do video production and as a general use computer. He told me he had heard Vista was a nightmare, he needed a machine now, and he wasn't sure what he should do.

      I told him that XP probably wouldn't 'get the juice' out of the current generation of processors properly and that windows 7 won't be out for a while and would he like to give Ubuntu (studio) a go. I told him he would at least save on the price of a copy of windows and he might be able to buy some other gear. As suggested by a slashdotter here I let him know that there would probably be problems as any computer has but we can work through any issues that arise, so far all has gone well.

      I was pleasantly surprised by the latest Ubuntu Studio Jaunty release. His video camera and mobile phone worked with it immediately, the webcam on the ASUS monitor works well with skype. We setup Amarok for his music collection. I showed him how to install more software, told him there were other video programs aside for Kino but to give this one a go, now he is using it to make dvd's of his fishing trips.

      My neighbour is a fireman, and is quite humble about his proficiency as a computer user. I told him the machine is NOT windows or a mac but he is using the machine with confidence blowing away any pre-conceptions in my mind of Linux usability. He is about as far away from being a Linux geek as anyone can be and keeping the purchase price of windows, to him, meant he could afford a kick ass logitech speaker setup and most of the purchase price of a new HP printer. When I asked him a few days ago about how the new computer was going his exact word were:

      "I'm lovin' it"

      Linux may not be ready for the desktop, but I think it's fast becoming the new value proposition.

      • 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.

    • Re: (Score:3, Informative)

      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.
No woman ever falls in love with a man unless she has a better opinion of him than he deserves. -- Edgar Watson Howe