Gates cornered on UK Vista pricing

Microsoft founder Bill Gates last night defended the UK prices of Windows Vista, which are up to 60 per cent higher than those charged in the US.

He seemed unprepared when the BBC's Huw Thomas asked him in a TV interview (link to video here ): "Why will the UK consumer pay more for Vista?"

Gates replied: "We have tried to keep prices largely in line from country to country and I haven't followed how the exchange rate may have made that drift… We do get cases where things go out of alignment, when currencies go up and down."

Thomas asked: "But you would expect there to be a big difference?"

Gates replied: "Our goal is to have a global way of looking at things."

If Microsoft has been tracking exchange rates, it clearly has not looked at them for a while because the pound has been pushing towards the $2 level for months.

Yet an upgrade for the Home Basic edition of Vista costs $99.95 (about £52) in the US, compared with £85 ex Vat in Britain; if you factor in Vat, it costs around twice as much here.

US prices of the full versions of the Ultimate, Premium, and Basic editions, translated into round UK prices are respectively £213, £128 and £99; respective UK prices are £314.89 (£369.99 inc Vat), £187.20 (219.99 inc Vat) and £153.20 (£179.99 in Vat).

Microsoft forums were flooded with complaints about the prices. One post called for a boycott of Vista until the prices were adjusted. But some, apparently US, correspondents were not sympathetic.

One wrote: "I wonder if Microsoft is charging more in member countries of the EU, since EU courts are imposing such costly, and sometime absurd, conditions on Microsoft, at the behest of European companies that can't compete?"

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