Linked by Thom Holwerda on Thu 15th Aug 2013 02:06 UTC
Windows

I know a lot of folks are eager to find out when they will be able to get Windows 8.1. I am excited to share that starting at 12:00am on October 18th in New Zealand (that's 4:00am October 17th in Redmond), Windows 8.1 will begin rolling out worldwide as a free update for consumers on Windows 8 through the Windows Store. Windows 8.1 will also be available at retail and on new devices starting on October 18th by market. So mark your calendars!

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RE[4]: Upgrade pricing
by flypig on Thu 15th Aug 2013 10:22 UTC in reply to "RE[3]: Upgrade pricing"
flypig
Member since:
2005-07-13

Microsoft being the mammoth they are, have astronomical monthly running costs, maybe they could sell Windows cheaper, who knows.

I'm no expert on this, so happy to be corrected, but wouldn't it be easiest to just look at the profits made by the Windows division? According to their latest SEC filings, Windows division had an operating income of $9.5 Billion on revenue of $19 Billion for the year up to June 2013. This gives them an (averaged) markup of around 98% across all Windows products.

http://www.microsoft.com/investor/SEC/default.aspx

I realise this is oversimplifying things, and I have no expertise in finance so hardly even know what these terms mean, but my (ignorant) conclusion is that Microsoft could sell Windows at half the price and still break even.

Since the Windows 8.1 update is free, a quick calculation suggests that after removing Microsoft's excessive markup, the *fairer* cost for them to be selling it at would be $0.

Reply Parent Score: 7

RE[5]: Upgrade pricing
by lucas_maximus on Thu 15th Aug 2013 12:02 in reply to "RE[4]: Upgrade pricing"
lucas_maximus Member since:
2009-08-18

Sorry I forgot businesses existed to make a profit.

Reply Parent Score: 2

RE[6]: Upgrade pricing
by Soulbender on Thu 15th Aug 2013 13:26 in reply to "RE[5]: Upgrade pricing"
Soulbender Member since:
2005-08-18

That's fine but moondevil made it sound look MS barely have their head above the water and by no means can afford to lower the prices.
There's an important difference between "can not" and "will not".

Edited 2013-08-15 13:27 UTC

Reply Parent Score: 9

RE[5]: Upgrade pricing
by Nelson on Thu 15th Aug 2013 12:53 in reply to "RE[4]: Upgrade pricing"
Nelson Member since:
2005-11-29

That's the joys of being a software company. Almost no variable costs and very low fixed costs. After a certain point, you're basically printing money. Windows costs them nothing to replicate, and gains them everything to sell.

This is in stark contrast to becoming a Devices&Services company which has very volatile costs month to month as the service fluctuates in usage and you're at the whim of supplier costs.

Its actually why Tim Cook is so masterful in his supply chain control (letting Apple extract ridiculous profits for a short while, there's evidence that's fading) and Samsung is such an unstoppable force.

Reply Parent Score: 4

RE[6]: Upgrade pricing
by moondevil on Thu 15th Aug 2013 13:16 in reply to "RE[5]: Upgrade pricing"
moondevil Member since:
2005-07-08

That's the joys of being a software company. Almost no variable costs and very low fixed costs. After a certain point, you're basically printing money. Windows costs them nothing to replicate, and gains them everything to sell.


It really depends, they still need to pay:

- employees
- burning media
- delivery
- marketing
- consulting companies doing outsourced stuff

Sure after a version is done, it is easy to replicate, but developer time costs money.

I worked for a few corporations where developer salaries were always seen as a big red minus on the budget as profits were assigned to sales division, not R&D.

Reply Parent Score: 3