Re:Comcast-Funded Civil Rights Groups Claim Low-Income Peopl...
by hackuser on Wednesday March 29, 2017 @03:57PM
(#13989986)
> Microsoft did cut the price of Windows to get people to adopt it early on because they would be making so much money from Office
If that's true (and that's not my understanding) they did it to gain marketshare and maximize profit, not because they already had enough profit. In that scenario, they cut the price of Windows to make even more from Office.
Re:Comcast-Funded Civil Rights Groups Claim Low-Income Peopl...
by astrodust on Wednesday March 29, 2017 @04:32PM
(#13990291)
They cut short term profits in order to cement long-term ones, so yeah, they were maximizing profits but over a longer time-scale than one transaction.
Microsoft did cut the price of Windows to get people to adopt it early on because they would be making so much money from Office.
Microsoft Word vs. WordPerfect, Excel vs. Quattro Pro and Lotus 1-2-3. These battles were won because of Windows and that cemented their position as industry leader.
Now that Microsoft is in a dominant position they don't cut the price of Windows as much, but to remain on top they do give the OEMs a very sweet per-unit deal they really can't refuse.