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Article #2090

Re: Microsoft

#2090
From: Joe Ragosta
Date: Fri, 08 Sep 1995 12:38
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In article <42o43o$d4b@inferno.mpx.com.au>, tonio@jolt.mpx.com.au (Tonio
Loewald) wrote:

> If you look at how Microsoft marketed Windows 3 it was against DOS
> (not Mac or OS/2). Similarly, Win95 will be marketed against Win3.11.
> Why market so heavily? Well, Microsoft won't make much money off
> Win95 directly -- suppose they sell 100,000,000 copies for $50 each
> (wholesale) then they make 5 billion, but 1 billion is spent just
> on marketing, and who knows, maybe half as much on actual development
> and testing (we were working out how many programmer years you get
> for the money they're spending on marketing -- interesting calculation),
> and a fair bit on after sales support, etc. The big money will be in
> selling Office 95 and replacements for all the other things that won't
> work quite right until you upgrade.

Just for the sake of argument, let's say your numbers are correct. If so,
he would make $3.5 billion on just Win95 alone. And you say "Microsoft
won't make much money off Win95 directly"? Boy, you must be rich if $3.5
billion PROFIT (OK, pretax) doesn't seem like much.

-- 
Regards, Joe Ragosta -- 100% Chemical and proud of it.
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Path: arc1-ca.pugleaf.net!ppp-1013.dca.net!user
From: jragosta@dca.net (Joe Ragosta)
Newsgroups: comp.sys.powerpc,comp.os.linux.advocacy,comp.sys.mac.advocacy,comp.os.os2.advocacy,comp.sys.amiga.advocacy,comp.sys.intel,alt.2600,alt.destroy.microsoft
Subject: Re: Microsoft
Date: 8 Sep 1995 12:38:16 GMT
Organization: Graver Chemical
Message-ID: <jragosta-0809950840050001@ppp-1013.dca.net>
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