Microsoft cuts prices in China to fight piracy

Posted on Monday, Aug 06 2007 @ 02:18 CEST by Thomas De Maesschalck
Microsoft decided to adopt a new strategy to fight piracy in China: it will lower the price of Windows Vista by almost two-thirds:
Lowering prices to combat piracy? Who'da thunk it?

Actually, a few companies have put two and two together and realized that, especially when dealing with China, the best way to get a slice of pie is to price yourself like you belong in the kitchen. Warner impressed us last year when they slashed the prices on their home video products in China, reducing the costs by more than 50 percent. Fox followed suit. Not only does the practice make legit goods more affordable, but it eats into the profits of those selling pirated software by forcing them to realign their own "offerings."

Microsoft's price cuts in China are quite sizable, percentage-wise. Full versions of Vista Home Basic have been cut to 499 yuan ($66), down 67 percent from 1,521 yuan ($200). Vista Home Premium was cut 60 percent, to 899 yuan ($118) from 1,802 yuan ($238). Curiously, the cuts mean that the gap between Home Basic and Home Premium has widened from 281 yuan to 400 yuan ($52).

On the upper end of the Vista product family, the cuts were smaller. Business Edition was cut to 1,880 yuan ($248) from 2,118 yuan ($279), while Vista Ultimate was trimmed from 2,831 yuan ($374) to 2,460 yuan ($325), a reduction of only 13 percent.
Source: ARS Technica

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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