I don't think he quite gets it, lower costs don't always
mean lower profits. Especially in software, as lets face it,
the unit cost is close to zero (there's a box, a manual {har
har} and a DVD) the development costs are high, nobody's
denying that. But if you reduce the cost by say 30% but sell
40% more, well you're doing better from a profit point of
view.
So I really don't think he gets it. This is also my argument
against the Windows SKUs, why doesn't everyone get
"ultimate" the box doesn't cost more than any other SKU,
and the development cost are all incurred - why the SKUs?
How many people are really running "ultimate"? If we made
all versions cost the same as "business" or "home
premium" would Microsoft really make less?! I don't think
so, and developers could rely on all the features being
there (and make more compelling applications, which let's
face it is why people run Windows).
Seriously, he should get a Mac, see how that's done and
leverage that on the PC (and I don't mean copy the Mac,
but get the idea that one OS SKU is much more healthy
than the myriad that they have).
What really amazes me is how "warm and fuzzy" they are
around the Xbox360 - it's like a different company, buying
an Xbox360 is a great experience (and yes, I know you
have to pay for Xbox Live, and Sony et al give that to you
for free). If (some might say "when") you have a problem
with your Xbox360 they just fix it, a really good service -
so they are PC owners treated so badly? (Especially those
who bought Vista Ultimate - which let's face it, was a snow
job)
I just don't think he gets it.
Discussion on:
Message 3 of 1
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