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Technology Stocks : How high will Microsoft fly?
MSFT 489.85+0.6%3:41 PM EST

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To: rudedog who wrote (11964)10/31/1998 10:18:00 AM
From: Daniel Schuh  Read Replies (2) of 74651
 
rudedog, are you ignoring the issue here, or just restating your understanding, which doesn't seem apply to this story? The problem wasn't the per-processor scheme, which Vobis was apparently able to live with.

Joachim Kempin, Microsoft's senior vice president of OEM marketing and sales, told Vobis officials that Microsoft would charge Vobis $9 per machine to carry MS-DOS only, but $18 per machine if it wanted to carry MS-DOS on the same machine with DR-DOS.

I.e. Microsoft was going to charge Vobis twice as much, per machine, if it offered DR-DOS in addition to MS-DOS, not instead of DR-DOS. $18 for every machine shipped, if both MS-DOS and DR-DOS were bundled. $9 if only MS-DOS were bundled. Postmodern free market economics at its best.

Cheers, Dan.
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