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Tuesday, February 25, 1992 - Page updated at 12:00 AM

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East Report

Microsoft Cuts Its Price For Ms-Dos 5 Upgrade

REDMOND

Trying to add a little sales momentum for one of its best-selling products, Microsoft Corp. has temporarily cut the price it charges retailers for its MS-DOS 5 operating system upgrade.

The Redmond company did not disclose its new price but said the promotion should take "street prices," or the cost to consumers, below $50. Currently, the MS-DOS 5 upgrade costs about $60 at many stores.

Microsoft said the price was cut to "broaden the upgrade's appeal to future customers." The software was introduced in July.

But a salesman at one major software store said there could be another reason: "Everybody already has it." To date, 2.7 million users of personal computers have bought the upgrade, the latest version of Microsoft's popular DOS operating system. An operating system is the basic program that makes a computer work.

The price reduction applies only through March 20. The salesman speculated that Microsoft might either be trying to meet a particular sales goal or might have an oversupply of the DOS upgrade.

But Microsoft said its inventory control system prevents it from getting caught with too much stock. Russ Stockdale, product manager for the DOS 5 upgrade at Microsoft, also said that, because the product has been so successful, sales generally have surpassed targets.

"I don't view this as a defensive move. It's simply a way to reach new people," he said.

Copyright (c) 1992 Seattle Times Company, All Rights Reserved.

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