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Re: Microsoft needs a help strategy

From: amicus_curious
Subject: Re: Microsoft needs a help strategy
Date: Sun, 25 Jan 2009 11:46:00 -0500

"AES" <> wrote in message">
In article <497b817e$0$1925$>,
"amicus_curious" <> wrote:

There are several things wrong with your notion, I think. The first being that Microsoft is somehow not "allowing" other companies to be "less timid" about possible Linux offerings. It is a myth widely held amongst the Linux
fans, I know, but there is absolutely nothing that Microsoft is doing to
overtly prevent such a thing. Indeed, there is a direct agreement with the
US DOJ that nothing in that regard shall be done as part of the overall
settlement of the USA vs Microsoft case in the late 1990s.  An oversight
committee is in place to make sure.  Do you think they are asleep at the
switch?  You probably do, but you are wrong.

     Might be prepared to believe these assertions, despite deeply
     ingrained skepticism re anything to do with Microsoft, if it
     weren't for the idiocy of this following sentence:

How does the one have anything to do with the other?

Nor is the economy helped by lowering the cost of goods sold in commerce.

      If Microsoft is forced to lower its (monopolistically enhanced)
     prices, and as a result many of their customers have some of
     their money left to spend on other goods and services, you're
     saying that that _hurts_ the economy?!?!?

You assume that the price points for Windows are established capriciously and arbitrarily. The ignorance of juries and jurists aside, that is not true. Prices are set based on what the product maker thinks is an optimum value proposition, i.e. how to obtain the optimum volume versus unit profit point. This is based mostly on what the expected perception of the buyer is in terms of benefits to the buyer vs costs of acquisition. Arbitrary reduction in prices for Windows might not necessarily result in lower prices for a Dell machine or an HP unless the OEM gives up his own price point strategy. If he does, he simply lowers the amount of money realized overall, since the original price was optimal. That reduces the cash flow and hurts the economy overall.

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