Recently there have been some enquiries about the difference between US and Australian pricing for Microsoft products given the current foreign exchange rates. 

We do not believe it serves our customers or partners well for there to be frequent changes in recommended retail pricing based on fluctuating currency exchange rates between the US and Australian dollar – whether they be favourable or unfavourable fluctuations. 

For the majority of our customers - consumers, small and medium businesses - their use and purchase of software is very local in nature.  For recommended retail prices to constantly move up or down in line with the international currency markets, would make that pricing unpredictable. 

Every market is different and prices vary by region being determined by a variety of location-specific factors including, but not limited to, local market conditions (such as the size of the market), local taxes, duties and in the case of physical retail, logistics.

In all cases, both for online and physical retailers, Microsoft only establishes the recommended retail price based on the above factors.  At the end of the day, each retailer makes their own pricing decisions– the evidence of this is seen in the wide variety of ‘street’ prices now available at major retailers around the country.

Brian Armstrong, Finance Director, Microsoft Australia