Works Suite Faces New Competitors

Works Suite 2004, a popular bundle of consumer software, has been released. Shipped on many new PCs, Works Suite is one of Microsoft’s most widely distributed home software products.

This version of the suite includes the following:

• Word 2002 (not the just-released Word 2003)
• Works 7.0, which includes spreadsheet, calendar, and database software as well as a variety of templates and wizards for common types of documents
• Encarta Encyclopedia Standard 2004
• Money Standard 2004
• Picture It! Photo Premium 9 for transferring and editing digital photos (such as a tool for red-eye repair)
• Streets & Trips 2004, a mapping product designed primarily for consumers and navigation (as opposed to MapPoint, a product for business mapping and statistical analysis).

This release faces increasing competition in the OEM channel: Hewlett-Packard and Dell continue to offer an alternative suite from Corel in some of their consumer PC lines, and Microsoft itself has introduced an OEM-only Office 2003 Basic Edition consisting of Word, Excel, and Outlook, which could draw some consumers away from Works. At a retail price of US$99, Works will also face competition from Office Student and Teacher Edition, which is widely available for US$149 or less and includes Word, Excel, Outlook, and PowerPoint. After Office 2003 is released in late October, the Student and Teacher Edition will include the 2003 versions of these products.