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Is The Software Price War Spreading?


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IS THE SOFTWARE PRICE WAR SPREADING?

The U.S. software price war may be spreading to Europe. European-language programs usually command a 20% or so premium over English-language versions. But when Lotus recently lowered its prices in Europe, Wall Street began worrying that the premium would vanish.

Those concerns caused one analyst on Nov. 23 to trim his 1993 earnings estimates for Microsoft. The company's stock promptly dove 6 1/2, to 88 1/2, before rebounding to 91 1/2 on Nov. 24. In a statement, Microsoft said that it is studying Lotus' pricing moves in Europe but hasn't made plans to respond.EDITED BY HARRIS COLLINGWOOD


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