Microsoft considers cheaper Office version
SeattlePI | at | by Mike
Microsoft Corp., which is seeing slowing sales of its Office word processing and e-mail software, said it is considering a lower-priced version of the program designed for consumers. Microsoft said it will release a new version of Office, which costs $240 to $580, in the middle of next year. The company is mulling over the pricing of the next update and may sell a version with fewer features to attract cost-conscious consumers, said David Jaffe, an Office lead product manager.
Microsoft gets about a third of its sales from Office. Revenue from Office grew less than 1 percent in the fiscal year ended June 30, as customers balked at spending several hundred dollars for a new version of the software when many already have an older one, analysts said. The program also faces renewed competition from cheaper products such as Sun Microsystems Inc.'s StarOffice and the freely distributed OpenOffice