Quote: Originally Posted by beauparc
I can never understand why Microsoft, having sold sufficient numbers of Office 2010 to recoup their developement costs, don't start selling Office 2007 for a minimal amount. Any money they make is pure profit and using 2007 might well tempt someone into buying the newer version.
Games manufacturers do this all the time. I've just bought the original Assassin's Creed (£5) to see if I liked it. I do and will now go and buy the later version. Multiply my £5 by all the others who have done the same thing and there's the profit.
I fear that Microsoft's reputation for charging as much as possible for their products may well be working against them.
The reason for this is as follows.........
MS are not stopping at the end of development of a single product, such as many Game Devs do.
The ones that have multiple "chapters" are not the same.
They create a product and they sell as many as they can for a short time, they know that at some point, sales of a game are going to drop off because there just isn't that kind of demand for all games, even on the really big selling titles, they only sell a finite number of each release. They make enough off of each of those releases to balance out there long term plans for a series, which is finite. And they are not the ones cutting the price on the product. The sellers/stores are.
MS are developing for a single Product, so yes, they make a lot of profit, but a lot of that profit does in fact go back in the R&D of that line as well as others.
Games, The stores are the ones selling them that cheap to either recoup the costs or just get them off their shelves or out of storage and clear room for the next title.
It is an Apple Juice and Apple Crisp scenario, they may fall under the category of Apples, but they are not the same.