So, Why is Microsoft Office Different Prices in Different Countries?

Depending on where you live in the world, you may be paying different prices for Microsoft Office. This has made many people angry over the years. But, why doesn’t Microsoft have a flat price for everyone? It’s a good question, and one that can have many different answers. The main answer, however, comes down to economics.

For example, in China, you can buy regular Microsoft Office for just $29.00 and the student edition for $3.00. Many people speculate that this has to do with trying to cut down on piracy of the software. It is true that before the price cut, nearly every copy of Microsoft Office in China was illegal. And, now sales have gone up over 800 percent. But, the price difference also has to do with the population itself.

The Chinese people make significantly less money than most Americans. If Microsoft charged the Chinese the price that the software costs in the US, it would always be too expensive for any Chinese person to afford.

As Chinese wages go up, Microsoft will most likely begin raising their prices. Microsoft wants to be in the on ground level as this fast-growing market takes off.

Many people are hoping that Microsoft will eventually be able to charge a flat international rate for its software. But, while many Europeans and Americans would rejoice at it, people in many other countries, including many Asian and Latin American countries, would consider it a luxury that is way out of their price range.

While the Chinese model makes sense because of their target audience, the price difference in Europe in a little more puzzling. European customers are going to have to pay significantly higher prices for Windows 7 when it’s released. There has been no real explanation for the price difference, but Europeans are not happy about the higher cost.

For example, Windows 7 Home Premium Ultimate sells for $219.99 in the United States. In Europe, you’re going to pay $421.68 in most European countries and $380.17 in the United Kingdom. That’s 90 percent and 73 percent higher respectively over American prices. And, because of EU antitrust laws, these versions won’t offer Internet Explorer 8. So, for more money, Europeans are getting a product that doesn’t have everything that the United States versions have.

Microsoft lately has been having some business model issues lately. It’s hard to tell if the European prices are a symptom of this. But, with the problems that they have been having, the jump in prices is not making any Europeans happy.