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ANOTHER MICROSOFT POWER PLAY?

TRY AS IT MIGHT, MICROSOFT Corp. can't seem to stop doing things that make it look like it's trying to take over the world. The latest: NITRO.

That's Microsoft's plan to start selling software in August at the microsoft.com Web site, which draws 1.5 million visitors a day. People browsing the site will see ''Buy Now'' icons wherever products are described. They will be able to click through to buy goods directly from Microsoft or one of its resellers. The company insists that it wants to pass buyers on to the resellers--not keep them for itself. One inducement: Microsoft will charge suggested retail prices, which are typically 10% to 30% higher than retailers.

But won't Microsoft be tempted to lower its prices and cut out the middleman? Nope. The company says it's not interested in selling directly to customers. That doesn't mean resellers won't pay a price for participating, though. They'll fork over ''referral'' fees of perhaps several dollars for each customer Microsoft sends their way. Plus, resellers will be required to own the latest version of Microsoft's Site Server electronic-commerce software--a strong incentive for them to chuck software they may have already bought from a competitor. If they want to play this game, they play by Microsoft's rules.

By Steve Hamm
EDITED BY IRA SAGER


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Updated Mar. 5, 1998 by bwwebmaster
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