Microsoft practices predatory pricing


...We already know that Microsoft loses money on most of its business (it primarily makes money on the operating system). But now we see that Microsoft is endangering the entire security ecosystem with ruthless, Standard Oil style pricing.

Start with OneCare: It is arguably a security suite, but just for the sake of simplicity, let’s just consider it an antivirus product. OneCare costs $49.95 for three PCs, an average of $16.65 per machine. (I’m going to ignore the fact that Amazon.com is blowing out OneCare at $19.95, or an average of $6.65 per machine—which is even worse — and Microsoft’s offer to its millions of OneCare beta testers all getting it for $19.95 as well.).

Let’s look at their price, versus the market leaders: Symantec and McAfee. Both of these companies have AV products that retail for $39.99. But they also have three-user offerings, at $69.99 (McAfee) and $89.99 (Symantec). SunbeltBLOG: Microsoft practices predatory pricing

Linked by shanmuga Wednesday, 21st June 2006 1:08AM