I agree with much of what you say and I'm very pleased that Xara is being developed. Xara do indeed need revenue to make this happen and like most companies they will want to maximise the return on their investment. This means pricing at a point where the majority of people will, in this case, upgrade.
Xara admit that many people will choose not to upgrade this time, meaning that the few who do want the extra features are paying over the odds. To sweeten the pill, Xara has thrown in Xara3d and if you haven't got this program (and want it) then the upgrade price is reasonable. However, if, like me, a customer has recently purchased Xara3d and has no specific need for the new features but would normally upgrade to have the latest version, then the upgrade is very expensive.
I don't have access to Xara's sales figures but based partly on the comments in this forum, my judgement is that Xara have got it wrong this time and not only lost $s but also alienated a significant number of their loyal customer base. Not a good business model.
Thank goodness though, as you say, Adobe didn't buy Xara. They redefine greed when you realise that they are selling Creative Suite 3 Master Collection for £800 more in the UK than they sell it for in the US! (Source: PC Pro August 2007)
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