While digging into the history of DoubleSpace and DriveSpace, I came across a handy article about the rocky relationship between Stac Electronics and Microsoft. Only I was distracted by the bold claim (certainly claimed in very bold letters) that a 40 MB drive cost $1,200 in 1989. Now, I don’t have a good sense of what cost how much in the US of A in 1989, but that just did not sound right.
Sure enough, a PC Magazine article about mail-order hard disks published in the June 1989 issue showed that in 1989, a 40 MB hard disk that cost more than $500 was an outlier, and finding one for $399 was not difficult. It also seemed odd to pick a Western Digital hard disk as representative of 1989 drive prices, because although WD was a major force in disk controllers, and did sell its own hard disks after the acquisition of Tandon’s drive division, the clear market leader at the time was Seagate. Other common mass-market drive makers were MiniScribe, Priam, or Micropolis… but not Western Digital.
So where did the outrageous $1,200 price came from? For a moment I thought perhaps that was adjusting 1989 dollars for inflation, but even in 2021, $500 (not a great price for a 40 MB drive) in 1989 dollars would be the equivalent of $1,100, not $1,200, and the article is several years old. So it’s probably something else…
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