Word gets thrown in for free because MS can afford to throw it in. Doesn't cost them a thing to do so, and they're hoping people will use the eligibility they gain to purchase an Upgrade Edition of Office!
Absolutely correct! And a great marketing idea!
Where's that leave the poor dumb ******* who buys MS Word as a standalone product, not knowing any different?
This is the part that bothers me and a lot of other people about the Microsoft method.
You can´t convince me that Microsoft means this to happen, although I don´t know why they don´t address the problem. I was with Microsoft in the early days when they came out with PC-DOS. (at this point half the readers are throwing tomatoes at me and the other half are cheering) The deal they made with IBM not only solidified their position in the market against their competitors but, unfortunately, proved to them that they could get away with some marginal programs and contracts.
When they came out with IE, they made a remarkably intuitive and brilliant business decision when they tied it in with Windows and forced their OEM customers to sell it with every system made.
I´m not saying this was right! I AM saying it was a brilliant business decision because this one decision kept their position in the market almost invulnerable, even though they have suffered in the PR department.
MS power moguls like Steve B. have promulgated this rule of thumb in every facet of the company ever since. It might be because the individual sales of product don´t demand attention in the overall profit scheme that this part of the formula does not get the attention it deserves. I, for one, believe they should give the products away to individuals because that PR would be worth a lot more than the profit they realize on these sales.