Windows Vista Prices too High

I mentioned before in a previous post that in my opinion the prices for Microsoft’s latest version of Windows, called Windows Vista, are way too high. The Business version costs about $300 while the Ultimate version costs an incredible $400. If you thought those prices were high, you’re not going to believe the following.

The prices in Europe have recently been published, and according to that website, the prices for Windows Vista in Europe are going to be 409 Euros (about $531.70) for the Business version, and 549 Euros (about $713.70) for the Ultimate version.

I almost can’t believe it.

Who in their right mind is going to pay THAT much money for Windows Vista? Honestly? This is just so absurd, my mind refuses to comprehend it. And I thought the US prices were high!

I installed the final version of Windows Vista yesterday on a test computer, and I have to admit that it certainly is an improvement over Windows XP, but nothing revolutionary. It’s even less of an improvement compared to what Windows XP was to Windows 2000. It certainly is FAR from what Bill Gates promised us during PDC 2003. In that regard Vista could even be considered a failure.

Does Microsoft really expect people to spend that much money on an OS alone? Compare this to Mac OS X Tiger, which costs about $105 on Amazon, and offers virtually the same features as the Ultimate version of Windows Vista. The price difference is incredible. Also compare this to the various Linux distributions that are available these days, and ask yourself if you really need Windows Vista. Most people use their computer simply to browse the Internet, use a wordprocessor or spreadsheet and for some basic multimedia functionality. Most Linux distributions today can handle those tasks pretty well already. And Mac OS X certainly is even more capable for those tasks, and is as good as Windows Vista Business which is 3 times more expensive, and comes very close to Windows Vista Ultimate, which is 4 times more expensive.

So again, why the hell would someone spend THAT much money on Windows Vista? To be honest, if I had to spend that much money to buy Vista, I’d be switching to Mac OS X or Linux instead. And if I’m correct, many people are going to do just that in 2007 if Microsoft doesn’t do something about the prices fast.

In addition to those high prices, Microsoft have also further locked down Windows Vista and made it more difficult for people to use pirated versions. These two strategies complement eachother. On the one hand you have the high prices, and on the other hand you also force people to have to buy a legal copy. This is, ofcourse, to sell more copies and make even more money.

But this strategy, again if I am correct, is going to massively backfire on Microsoft. There are two options. First, if people are able to reliably crack Windows Vista, even more people will use pirated versions of Vista because the prices are simply too high for them to be able to afford a legal copy. And this means Microsoft is actually going to sell less copies and make less money, although they will be able to keep their marketshare. In the second option, if people aren’t able to reliably crack Windows Vista, those people that were using pirated version of Windows XP are going to have to switch to an alternative OS, like Mac OS X or Linux. In addition, a lot of people using a legal copy of Windows XP might not be able to afford Windows Vista and could also potentially switch to a different OS. So in this second option, not only is Microsoft going to sell less copies of Vista, but they are also going to lose lots of users to other OS’s, and as a result lose marketshare.

At a time when there are increasingly more stories appearing everywhere of companies and governments around the world switching to Linux, I can’t help but wonder why Microsoft is going down this path. It’s almost like they are encouraging people to switch to another OS and making it more difficult to choose Windows.

In a recent article, our beloved Steve-O was interviewed:

In an interview, Ballmer said that more than 20 percent of its software running around the world is pirated and the company aims to lower that figure with a new authentication program to run in Windows Vista and Office 2007.

Microsoft is probably going to succeed, but the mistake they are making is to assume the people part of that 20% are actually going to buy Vista. There is a reason those people are running pirated versions of Windows XP, and that is likely because they cannot afford it. If they cannot afford XP, they most certainly are not going to be able to buy Vista at those absurdly high prices. The thing that is more likely to happen, is that these people are going to switch to another OS. So if I was Microsoft, I’d expect to lose at least 20% of my marketshare in the near future.

Steve-O goes on to say:

“We’re trying to make it easier for people who somehow have received improperly licensed versions to get legal, and we also put more roadblocks in,” said Ballmer, declining to specify how much it can reduce the piracy rate. “It will help,” he said.

He actually claims Microsoft is making it easier for people to get legal, by putting in more roadblocks and maintaining those incredibly high prices for the software. I’m sorry, but what?? If anything, more roadblocks plus high prices will make it easier for people to not use Vista at all. And that will not only reduce the piracy rate, as he is hoping, but also the number of Windows users in the future.

Way to go Steve-O!



21 Responses to “Windows Vista Prices too High”

  1. Pedro Sanchez

    LOOK i disagree with you completely. Microsoft has been the motor of the word economy since the computer was created … and is among oracle and IBM the most innovative company ever!!!!
    in 100 years will be speaking about microsoft and how much Bill Gates has done for us!!.

    The Europeans are playing a very very dirty game with Micorsoft and they buy Windows because there is nothing better and blame Microsoft for all the good things they have done.

    I think the world should take a look at why the Europeans are using ilegal methods through courts that want to make profit of unfair laws against amarican companies. THIS IS IN MY EYES VERY DIRTY and of course increases the prices for the operating systems.

    Take care of what you say

    Reply
  2. Karel Donk

    Pedro, I agree that the various legal issues Microsoft faces in Europe are mostly stupid. But Microsoft certainly is not going to win users with those prices for Windows Vista. They seem to make things worse for themselves.

    Reply
  3. Cell9

    I made a point of never jumping on the bash-MS bandwagon in the past but their current strategy is making it VERY difficult indeed to remain a loyal customer. Also, its not a matter of “if” the OS will be reliably cracked but “when”. You can knock out 99% of the casual piracy just fine with what they’re doing now with XP. Trying to dig out that last 1% is going to do far more harm by making the hoops customers need to jump through an enraging experience.

    They have 90% of the worlds PC’s under their thumb, they could come up with far more creative revenue streams that won’t leave customers feeling like they spent the night in a jail cell with a serial rapist. But hey, what do I know.

    Reply
  4. analytik

    How about lowering the cost to decrease the piracy, huh? Dumbshit.

    Reply
  5. analytik

    Of course, I was talking about Ballmer. But you’re traitor, you’re not even linking to PlanetCrap? HOW COULD YOU?!

    Reply
  6. Karel Donk

    I don’t want to expose my readers to the horror that is Planetcrap. :grin:

    Reply
  7. Tyler

    I have to agree that windows vista is to expensive to buy. I would never pay that much. Now if the pricing was around $99 I would buy a copy without hesitation. With that said, if I, the average “JOE” would be willing to fork over $99 to Bill, then I’m sure 10 times the number of people will purchase Vista. That would give good old Bill at least twice the sales and twice the profit. MS really needs to rethink the price point.

    Reply
  8. Wizard Prang

    @karel

    It?s even less of an improvement compared to what Windows XP was to Windows 2000.

    That’s not saying much. most of the differences between those two were usability and cosmetics – Turn off all of XP’s dancing baloney and you have a UI that looks just like 2000. Even the version numbers – 2000 is Windows 5.0, XP is 5.1 – suggest only a minor difference.

    And MS wants me to pay full whack for that? No thanks.

    @Pedro

    LOOK i disagree with you completely. Microsoft has been the motor of the word economy since the computer was created ? and is among oracle and IBM the most innovative company ever!!!!in 100 years will be speaking about Microsoft and how much Bill Gates has done for us!!.

    What a load of bollocks. MS got where they are today by slick marketing, intimidation, acquisition, luck() and, on occasion, outright theft. MS’s reluctance to embrace standards is legendary, and their unwillingness to share the market with anyone else is axiomatic.

    I use MS operating systems at home (98, 2000) and at work (XP), they work well enough, but I have no illusions that MS’s hands are not clean – and they are NOT innovators.

    It may be news to you, but Europe is not America; they can do what they like. If MS does not like it, they can take their business elsewhere.

    Take care of what YOU say – and check your facts before saying it.

    Eat that, Troll.

    @Cell9

    “You can knock out 99% of the casual piracy just fine with what they?re doing now with XP.”

    You can also lose 99% of your customers by pissing them off, thus . I have five computers in my house – none of them run XP, as I am philosophically opposed to WPA, DRM, WGA and all of those other TLAs that we know and love. Windows 2000 is the last MS OS that I own, and I am actively testing Ubuntu Linux, with which I am very impressed.

    FWIW, I _do_ have a beta of Vista Ultimate running on one of my systems. Verdict: Not impressed. Nothing to see here, folks, move along, move along…

    Reply
  9. curious george

    I’ll pay 500$ for the ultimate, so figure 100$ a year until a new os comes out. Whats wrong with paying 100$ for a year using an updated os. ciao

    Reply
  10. Paul

    Has no one thought of the unthinkable? Apple decides to put on the shelf a copy of OS X for plain old PC’s, but ups the price a bit, as they offset some of it in hardware profit. Cost? 199… and it beats the sh- out of Windows Vista Ultimate.

    Maybe not a perfect analogy here… but similar to how Sony’s delayed and very expensive PS3 was trumped by the half as much priced but fully innovative Nintendo Wii. Will OS X be the new Wii for the PC industry? Imagine the ripples this would cause.

    - Paul

    Reply
  11. Andrew

    I have been using computers since MS-DOS 5.0 + Windows 3.1. At that time, Windows was not necessary to run your computer. It didn’t multitask/timeshare properly and took up 11mb of my 130MB HDD (DOS took ~5mb).

    I Have run every version of Windows (often in ?eta) since 3.1 and have seen all the version before it. Once 95C came out, they had a somewhat stable and usefull multi-tasking/timesharing Operating System (not just a GUI). Once I got to Windows 2000, I stopped. I ran it from ?eta stage and full release all the way up until late Y2006 when I was somewhat forced to use WinXP SP2 so that I could use the newest versions of various MS products like MSN Messenger Live, IE7, etc.

    I do like XP, but the hassel of cracking it annoying. Should you have a legal copy and then upgrade your computer, you may have problems because it will detect a significant hardware change and want you to pay for another liscense.

    XP Pro is 200 US (250 CDN). That’s alot of money. Sure you can get XP HOME for just over 100, but you miss out of the few extra features of XP Home that most computer geeks would want for their expensive upgrade from Windows 2000.

    MS-WIN-VISTA HOME Basic is around 230 US (260 CDN). So for more than XP Pro SP2, you get the newest version of Windows, but fully scaled down and w/o most of the interesting new features of VISTA.

    MS-WIN-VISTA ULTIMATE is 400 US (500 CDN). This is the version that most computer GURUs will want because with it, you can take advantage of all the new features of VISTA. The problem here is that at 500 CDN, you can buy a modern gaming PC from your local retailer for that with an XP COA.

    Say I haven’t upgraded my PC since 2002 and I’ve been saving for a new PC. I’m running Windows ME because it came with my PC at the time and 2000 was too expensive. The new computer I want is going to cost me 750 CDN (custom build) but then I want the newest version of Windows (VISTA) on there so I’m fully up-to-date and sure I’ll be compatible with all the newest apps and games for the future. OMG! Windows VISTA Home Basic (no frills) is 260$ CDN and doens’t even have the new features I read about. VISTA ULTIMATE is 500$ CDN, that’s 3/4 the price of my new PC!! I guess I’ll have to settle for MS-VISTA-HOME-PREMIUM which has most of the features I want and is only $300 CDN (40% of the price of my hardware).

    This is NUTS. 500 for a PC and 250-500 for the operating system. In 1993, a 386 computer cost 2300$ CDN with a printer, monitor and DOS 5.0 / Win 3.1. DOS 5.0 was 35$ and Windows was around the same. Those prices don’t even factor into the price of the hardware and its a no-brainer to BUY legal copies of your OS with the new computer.

    Now alot of ppl will buy a custom PC and pirate the OS because it costs so much. With XP its very difficult to pirate keeping all the functionality and it’s so expensive that when you think about buying a legal copy to avoid the annoying crack issues, you accept the annoyances and keep your pirated copy.

    Bottom line is, as others have said…

    Apple MAC OS X Tiger – 149.99 CND @ the apple store online (canadian)
    - You don’t have to enter in a serial code and there is no authorization to use this OS
    - You can re-sell your copy and that use can use the OS hassle-free
    - Plenty of online support http://www.apple.com, or online forums
    - You -could- give a burned copy ot a friend hassle free, but you should buy it
    and every Apple Computer comes with MAC OS X DVD or CD

    Ubuntu Linux OS – FREE + FREE Shipping Online
    - You can give a burned copy to a friend and its hassle free

    Windows XP Pro SP2 – 249.99 CDN @ your local retailer
    - You have to authenticate often
    - There is a serial code and
    - should you upgrade too much, XP may decide you need a new COA
    - The CD/DVD often does NOT come with your new PC, but simply a COA sticker with your serial code and the software pre-loaded. If you wanted to reload fresh, you would have to pirate a copy of XP and use that disc with your LEGAL COA. * or you could ask MS for a replacement Disc at a HIGH COST

    Windows Vista Home Premium – 299.99 CDN @ your local retailer
    - Same problems as XP Pro but now it will be much more difficult to pirate and changing computer hardware will probably piss Vista off as well.
    - I don’t know if the DVD will come with your NEW PC or if you’ll just get a sticker, who knows.

    The point is, Microsoft is punishing the home user who would buy a legal copy of Vista with it’s high price point. There will always be people able to crack Windows, but it’s going to get more difficult.

    Microsoft obviously is sending a message, although, not the one they probably intended to send. That message to me is – “Seriously consider buying a MAC and happily run MAC OS X” or “Seriously consider trying a distribution of Linux. It’s free and there is more support for it than Windows anyways”

    Microsoft may single-handedly push more users away from PCs and give Apple a higher share of the hardware and software market. If not just that, they may give Apple the opportunity to run it’s MAC OS X on PCs which would be AWESOME! Linux will also become more popular.

    I was going to go buy VISTA but 250-500$ would get me alot of nice hardware. I’ll stick with my Windows 2000 and Windows XP PCs and my Apple Mac computer running OS X Tiger.

    So VISTA may actually be GOOD for the PC/MAC industry in that way that it will make people seriously consider other platforms (APPLE MAC OS X or LINUX on PC/MAC).

    Y2007 will give us the answers. I’m sure we’ll see stats by mid-summer showing people migrating to other OS’s and platforms. I would also not be surprised if Apple DOES in fact offer it’s MAC OS X for us on PC platforms. I’m sure they’re not far off from it now with the new Intel Based MAC’s.

    Take care everyone and hopefully some of you will seriously consider another platform.

    Reply
  12. Vassilis 'vasper' Perantzakis

    I’ll stick to my copy of Suse Linux 10.1 PRO (89Euro with support and a manual) thank you very much. If Microsoft wants to sell a 400$ software for 700$ in the EU, it can try to sell it to Americans in EU.

    Microsoft is so full of itself, it can’t see beyond its profit margin….

    Reply
  13. Pingback: Karel Donk » Archive » Windows Vista a Disappointment
  14. a user

    Well, it certainly didn’t take long – a pirated Vista Business Edition can be easily activated with a VMware Image of an activation server, the only drawback is that the activation process must be repeated every 180 days. Who even cares? Vista looks slightly better than XP but isn’t as snappy as XP was, most applications are slower, it’s just a pain to use it. I’ve no idea why anyone would want to switch to Vista…

    Reply
  15. Olaf

    I live in Europe, and these super high prices give the result that people, even the people that saved money to buy Vista (including me) when it comes out, are all deciding to stay with XP as long as they can. I have seen many strong emotional reactions when they find out the price and the confusion of the numerous versions. And these are from people that actually understand the underlayng changes of Vista so thery realize that Vista is in the core much better and secure.

    Adding more fuel to the fire is the moment people start to realize what this DRM and copy protection means. Most people in Europe plainly hate DRM and anything that is connected to the movie and music industry because of the agressive campain against piracy. People must realize that the students from a few years ago are now starting their profession as IT, so they take with them the strong negative emotions against DRM!

    The combination DRM+superhigh prices is deadly in the long therm. I see momentum beeing built up towards Linux. I do realize that it will still take years before people actually migrate to something else than Linux but all it nees is a critical mass.

    The odd thing is that I was a big van of Vista. And I do believe that the developers did a great work, but now I realize that all Microsoft wants is to suck the users dry.

    Oh, I also asked IT if they are plannig to migrate Vista. The answer was simply: NO WAY! Too expensive. More and more servers are now beeing replaced by Linux servers at the company.

    Reply
  16. Olaf

    Just one additional note, it is not only the Vista that is waaay too expensive in Europe, it is also their Office! I decided to upgrade my office but when I saw the pricen I have decided to stick with what I have. Only Outlook 2007 is one option that I probably would purchase, but then again, the feeling that Microsoft wants to suck the users dry, give me such a bad feeling that I already feel like having been ripped off before I buy it.

    Providing the Office at the same moment as the Vista makes matter even worse since many people have the feeling that they are double ripped off. It is reaching a critical mass here in Europe.

    I cannot predict the future. And I do know that Microsoft will be here for a long time, but I do believe that this marketing strategy will become a bookcase sample of how to destroy a good working product and company fast without effort by becoming greedy.

    Reply
  17. Pavement

    It is not just Europe getting ripped off by Microsoft, Australia is as well. I would happily pay US $259 for Vista Ultimate (currently running a dodgy copy of vista just to test compatibility and am quite impressed), but it is more than double the price in Europe and Australia! I have been excited about vista for months, but I refuse to pay this because I know I am being robbed of my cash and treated unfairly and it leaves a terrible taste in my mouth. M$ are literally driving Windows enthusiasts to other platforms.

    Pick up your act Microsoft or may the pirates succeed! I used to hate using the old Mac OS (pre-X), but if OS X came to PC’s I would gladly buy it.

    …and no, before you say it, Linux is no good for me. Have tried several variants and to me it just feels like a rejigged version of the old Mac OS’s that I despise.

    Reply
  18. jimmy james

    Vista will sell a lot of copies of Ubuntu and other linux flavors. I run a small office of approx 35 employees. I have a full plate keeping everyone going with xp. I do not have the time or money to buy,install and support Vista. I have many users using laptops, which tend to experience 50% less battery life when running Vista – thats a nonstarter.
    I used Unix in the 80′s and I’ve run a half a dozen linux machines for testing and webservers. They have gotten much better, if I can assure myself of compatibilty with spreadsheets and documents, Microsofts days at my business are numbered. Microsoft finally gave me a reason to switch to Linux and they named it Vista, which is kinda ironic because from my viewpoint (vista) I can see that Windows is doomed and Linux is the future. I’ll probably leave a computer or 2 running xp to do file translations or other odd jobs, but Microsoft will need another revenue stream to get a penny from me.

    Reply
  19. Max Normal

    Pavement, I had thought about the OS X on PC thing myself, but there is a good reason that it is unlikely to happen. Apple have started using x86 processors, so they are virtually a PC now anyway these days. One of the main reasons Mac users stick with apple is OS X (and an outdated and very misplaced opinion that their hardware is still superior to the PC). If Apple released OS X for the PC, they would be placing themselves at risk of becoming just a software vendor rather than a woldwide computer manufacturer in the home computer sector. However, if they included support for games and advanced networking for business, perhaps the possible decline of worldwide Mac sales would be offset by a healthy slice of the OS market.
    If this was to happen, I would buy it too, but it looks like unless you are a gamer or rely on microsoft compatible software like most businesses and academic institutions, Linux is the best bet.

    Reply
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  21. Alienhan

    YES !!! I absolutely agree: Windows Vista Prices too High

    I wanna have legal OS, but I am student…so i really cant afford Vista.

    using xp and i am happy…

    Reply

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