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Raymond: Cheap PCs will doom Microsoft

Time: 10:13 EST/15:13 GMT | News Source: ZDNet | Posted By: Robert Stein

Microsoft's software monopoly is running out of time, says open-source guru Eric Raymond, and he's got a precise figure for when the company's position will no longer be sustainable: $350. When the price of a PC falls below $350, Microsoft will no longer be viable," Raymond said in an interview with ZDNet UK. "The reason is that if you sell something below that price, you can't afford to pay the Microsoft tax and still make money." He said the best illustration of this is the handheld PC market, where Microsoft software powers relatively expensive devices, but has no presence in the lower-end market.

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