Microsoft New Pricing strategy

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Despite the competition in the software world, Microsoft has decided to cut down on prices of fronts from flagship windows, its office product to web services. According to CEO Ballmer, the extensive price reduction will expand the companies market share. The idea is to lower margins in some business areas and boosting over all earnings. Instead of pirating the software, the consumers will find it preferable to pay for it. In China due to the excessive piration of most office products, the price cut off went as low as $29.
(source:www.businessweek.com/magazine/content/09_30/b4140051491507.htm)


I can only hope that this strategy will turn out for good.