Windows 8: No 99 Cent Apps For You - InformationWeek

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Windows 8: No 99 Cent Apps For You
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User Rank: Apprentice
7/27/2012 | 4:42:04 PM
re: Windows 8: No 99 Cent Apps For You
@GA Programmer

It's utterly stupid, but that doesn't mean that it's not true. I see reviews in the iTunes store all the time complaining because something was 1.99 instead of .99 or free-yet there's something that isn't perfect.

What happens-& this has been studied in micro-economics-is that folks' expectations are instinctively tied to percentages relative to a desired price, whether it be market rate or here the desire to pay the minimum price. Thus they scale to whatever actual $$ are involved.

MS absolutely has the right to set whatever minimum price it wants. It has to recover its up front rollout costs and there are ongoing infrastructure/processing expenses. Maybe that legitimately adds up to a floor price of $1.49.

Still, they are at ground zero. Long term profit-arguably long-term survival in the mobile market-can only be achieved by luring lots of users. Amazon has perfected the art of underpricing to gain market share. Microsoft could learn from them.

Why not offer an introductory minimum price of .99 for the first six months? Announce that it's a promo to give people a chance to see how great the new Windows 8 is, etc., etc. That way you match Apple/Android and give people an incentive to front load their phones with all their favorite apps. If you've got mindshare, you can expire the introductory price as planned. If not it won't matter.
User Rank: Ninja
7/24/2012 | 2:37:01 PM
re: Windows 8: No 99 Cent Apps For You
Sorry, I just have to laugh at some of the claims here. You're telling me that someone who spends over $200 on apps (most of which, let's be honest are frivolous) is going to be upset because each one costs $0.50 more? Not to mention the fact that many of thosecost more than $0.99 (most iPad apps I have seen are $1.99, which is $0.50 MORE than the ones for Apple) .

I am just not buying this arguement. Just more IW Microsoft bashing and Apple praise IMO.
User Rank: Apprentice
7/23/2012 | 8:13:28 PM
re: Windows 8: No 99 Cent Apps For You
In response to Terabyte Net, Microsoft is not just setting other people's prices, they are setting a minimum price for their service. They get a thirty percent cut and appear to have made the decision that it is not worth being the broker on a 30 cent sale, but want a minimum 45 cents to make a transaction. Since they are paying for the credit card processing, etc, they should have a right to set a minimum price on that. I will leave it to them to decide what price is in their best interest. It does not seem to be the best strategy when they are desperate to gain market share...
Terabyte Net
Terabyte Net,
User Rank: Apprentice
7/23/2012 | 5:58:41 PM
re: Windows 8: No 99 Cent Apps For You
It should not be legal to set prices. It's none of MS's business how much a developer charges. Just another reason why it's time for a change at the top of MS. They need to bring Gates back like Apple did with Jobs or MS's day in the sun will fade quickly. I'd hate to see that, but MS has made some HORRIBLE decisions in the past few years since Gates left. Fixing prices is just another foolish move. They have 0 mobile market share so they start out 50% more expensive? Come on, how does that make sense? It would have been like Vizio coming into the US TV market at 50% more than Sony and expecting to become the largest TV vendor. They did just the opposite and where is Sony today? Losing $ so fast they can't plug all the holes. As a shareholder it might just be time to start chatting with other shareholders about a change at the top.

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