Falling dollar forces MS price hike

Falling dollar forces MS price hike

The seemingly continuous fall of the Australian dollar is starting to take its toll on the industry with Microsoft announcing it will be forced to increase the price of its software.

Claiming the pricing differential for its business application tools, operating systems, server software and development tools is no longer sustainable, the software giant will increase prices from between 10 and 18 per cent from December 1.

However, the company will wear the cost on existing consumer, reference and games products purchased through retail channels over the Christmas season. The price rise will not come into effect for these products until January 1, according to Microsoft's director of enterprise and solutions marketing, Alison Dodd.

"Except for the GST, we have been able to hold prices constant over the past two years, despite significant downward currency movements," Dodd said in a statement. "However, the continuing fall of our dollar against the US currency means we've had to make this change."

According to Dodd, Microsoft has passed on roughly two thirds of the dollar's depreciation through the channel.

"We will continue to monitor the exchange rate and will reflect any currency appreciation in our prices as soon as is practical," she said.

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