If the US Dollar is weak -- which it absolutely is these days! -- then products exported from the US to other markets should be LESS expensive than they are in the US. If a copy of Windows costs $200 and $1 = â1, it should in theory cost â200 in Europe. If the dollar then fell to half a â, Windows should cost only â100. But that's a bit simplistic and will only be true if the worldwide prices are, in fact, derived directly from the US price. That may not be the case.
More than likely, what happened is that Microsoft has locked in the prices worldwide based either on historical exchange rates or on their local branches' opinion about what Windows "should" cost in each market. So someone in Microsoft UK decided more or less arbitrarily that Windows should cost Â£189.99 in that market. And since the dollar has dropped since that decision was made, UK customers are "paying more" in US$ terms -- but really, the UK price probably hasn't been changed. So it's a combination of TFA being overly sensationalist AND Microsoft being Microsoft.