Up to $670 for Vista in Australia?

Dan Warne06 September 2006, 3:02 AM

Microsoft today confirmed its US pricing for Windows Vista. Based on the previous price difference between Windows XP in the US and Australia, we could end paying as much as $670 for Vista when it hits.


Microsoft today released US pricing for Windows Vista, ranging from $US99.95 for the upgrade version of Vista Home Basic through to $US399 for the full retail version of Vista Ultimate.

The version that APC readers will probably be most interested in, the Vista Home Premium upgrade, is $US159, which we estimate will translate to $A267 based on the price difference between XP's US and Australian pricing.

Microsoft says these prices are valid for the United States only and actual Australian pricing is yet to be confirmed.

Windows Vista US pricing

Version Retail RRP Upgrade RRP
Business $US299 ($A387) $US199 ($A258)
Home premium $US239 ($A310) $US159 ($A206)
Home basic $US199 ($A258) $US99.95 ($A129)
Ultimate $US399 ($A517) $US259 ($A336)
Enterprise Only available to volume license customers

The Australian dollar prices above are direct conversions based on today's exchange rate.

So, how does that compare to XP pricing now? Here's the official Australian pricing from Microsoft.com and Microsoft.com.au:

Version Retail RRP Upgrade RRP
XP Home $US199 ($A325 - 1.63X) $US99 ($A169 - 1.70X)
XP Pro $US299 ($479 - 1.60X) $US199 ($A345 - 1.73X)

The median value of the multipliers between US and Australian pricing (1.63X to 1.78X), is 1.68X. That multiplier takes into account exchange rate, Australian Goods and Service Tax (GST) and profit markup applied by Microsoft Australia here.

So, using the 1.68 multipier, here are our best guesses on what Australian pricing for Vista will be when it hits.

Version Retail RRP Upgrade RRP
Business $US299 ($A502) $US199 ($A334)
Home premium $US239 ($A401) $US159 ($A267)
Home basic $US199 ($A334) $US99.95 ($A168)
Ultimate $US399 ($A670) $US259 ($A435)
Enterprise Only available to volume license customers

Ouch -- an estimated $670 for the retail version of the Ultimate Edition. Let's hope Microsoft Australia decides to take a slightly smaller cut on that one than it did with XP in the past.

In reality, though, people either buy a full version of Windows with a new computer (in which case they get the drastically discounted OEM pricing) or they buy an upgrade, so most people interested in Ultimate will be looking at the estimated $435 Upgrade price.
Microsoft Australia was unable to immediately provide an indication of the range of prices computer manufacturers pay for Windows XP on an OEM basis at the time this article was written. Nor could they give any indication on what the Vista OEM pricing would be.

However, the upgrade pricing of Home Premium at an estimated $267 is substantially cheaper than the price of XP Pro at $345. This shows that Microsoft has recognised that many home users prefer XP Pro over the artificially hobbled Home version and it has taken this into account in its Vista range and pricing strategy.


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