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- From: helz@ecn.purdue.edu (Randall A Helzerman)
- Subject: Re: Is Microsoft the next Standard Oil?
- Message-ID: <1992Dec29.225839.15668@noose.ecn.purdue.edu>
- Sender: news@noose.ecn.purdue.edu (USENET news)
- Organization: Purdue University Engineering Computer Network
- References: <1992Dec29.015526.3909@noose.ecn.purdue.edu> <1hpr2dINN80o@tamsun.tamu.edu> <1992Dec29.194407.13490@noose.ecn.purdue.edu> <1hqe98INNsef@tamsun.tamu.edu>
- Date: Tue, 29 Dec 1992 22:58:39 GMT
- Lines: 32
-
- In article <1hqe98INNsef@tamsun.tamu.edu>, bdubbs@cs.tamu.edu (Bruce Dubbs) writes:
-
- |> If one company has deep pockets and no controls,
- |> the potential exists for that company to dump the product (software) for a
- |> period of time until the competitor goes out of business and then
- |> raise the prices again.
- |>
- |> Has MS done this? You bet. How much was OS/2 1.0? Answer: $325.
- |> Why so much? No competition. How much was the original OS/2 PDK?
- |> Answer: $2600. Same reason. Did IBM go along? Yup. They were
- |> partners, not competitors then.
-
- Wait a minute--how was this an example of a company dumping a product,
- getting a hugh market share, and then charging outragious prices?
-
-
- |> Dumping of any product at such a low price to put competitors out of
- |> business or prevent them from entering the business hurts the
- |> consumer. Look beyond today. If competitors are eliminated, we all
- |> lose.
-
- By "Dumping" I assume you mean selling something below what it costs to
- produce it. However Microsoft hasn't been doing that--even when you factor
- in the cost of developing Windows--selling a million copies of it a month
- at $8 a copy still isn't selling it below cost.
-
- |> Look beyond today. If competitors are eliminated, we all
- |> lose.
-
- With OS/2 and NeXTSTEP (both of which can run DOS _and_ Windows programs)
- Solaris, and Pink, I don't think Microsoft has faced as many competitors
- in its history.
-