Microsoft slashes prices to fend off Chinese pirates

Finally figuring out that if it doesn’t make its software affordable, it runs little chance of selling much of it, Microsoft has decided to cut the price of Office Home and Student 2007 in China from $103 down to just $29.

Microsoft China first halved prices back in June. These price cuts apparently made for “very good pick-up” in licensed programme sales according to general manager for business operations and marketing in Greater China, Garth Fort, encouraging Microsoft to slash prices further.

In fact, indications are that the price cuts are already proving so successful in tempting Office users into becoming paying punters, that retailers may run out of stock. “We may have to go back and make more,” noted Forth.

Of course, piracy isn’t the only enemy Microsoft is currently doing battle with in China. Booming competition from rivals offering similar programmes dirt cheap, or even for free, are becoming quite a thorn in Microsoft’s side.

But the firm is optimistic that this latest attempt in promoting licensed software for a slightly less than a month's wages will boost sales significantly.

China is already the second largest market for Microsoft, with Fort noting that the amount of computers sold over the past five years with Windows pre-installed had shot up “tremendously”.

Chinese pirates must be shivering in their timbers.