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To: Charles Hughes who wrote (20281)6/26/1998 9:12:00 PM
From: drmorgan  Respond to of 24154
 
What I Hate Most About Windows 98:

Jesse Berst bitchin and moaning about Win98....

ts inflated price. Not long ago, I wrote a piece for PC
Week explaining why Windows pricing could be the
smoking gun. I pointed out that Windows has not
dropped in price in more than a decade. During that
same decade, most software programs fell by a factor
of five or 10 times.

Other analysts have noticed what's going on. "In
markets where [Microsoft] has a commanding position,
it seems to be using classic monopoly pricing," said
Business Week. The Wall Street Journal put it this
way: "Everywhere else in the technology business...
prices have fallen... One exception stands out. The
price of Microsoft's Windows operating software..." The
Journal estimates the company's gross margin on
Windows is 92%. And the operating margin is more
than 50%.

By comparison, many hardware makers operate on 5%
or less. That, my friends, is what happens when a
company doesn't have any competition. It gouges
customers.


How can anyone disagree that Windows 98 is overpriced? Sure 3.1 to '95 was a major new release that warranted a kind of price one would pay for a NEW OS. But '98? I'm running OSR2 whatever and can't for the life of me see any compelling reason (other than the fact I got '98 for $30 on a new PC upgrade coupon) to buy this over priced bug fix.

zdnet.com