Pricing WebTV

from the economics dept

News.com has an article about how Microsoft is learning from its experiences pricing WebTV. It's now being offered well below the cost to build, and Microsoft is offering subsidies to the manufacturers, and making up the difference on the service. So, basically, the cell phone model more or less. Exactly what most people have been arguing Microsoft should have done when they originally bought WebTV. Well, it's just like Microsoft to take three or so tries to figure something out.