Microsoft drops price due to lack of demand

This seems like a huge blow to the company’s origins. Pretty soon, as global regions prove less likely to succumb to anticompetitive tactics and are free to make a balanced comparison versus other products (especially in the area of security), Microsoft might have to just give their software away.

Microsoft software will sell for just $3 in some parts of the world in an attempt to double the number of global PC users.

Some people call this a business strategy to out-compete hobby-ware such as Linux, or an extension of the kill-collaboration manifesto that built the Gates’ family fortunes. In terms of locking consumers in to the Microsoft philosophy, the question will become whether people are stuck with a $3OS or if they can use another OS on the same hardware.

In related news, Iowa has settled their lawsuit with Microsoft:

Microsoft Corp. agreed Wednesday to pay Iowans up to $180 million to settle a class-action lawsuit that claimed the company had a monopoly that cost the state’s citizens millions of dollars extra for software products.

The $179.5 million settlement means individuals in Iowa who bought certain Microsoft products between 1994 and 2006 will be eligible for cash. Companies with multiple copies can seek vouchers that will enable them to buy computer equipment and software. The amount that can be claimed will depend on which product and how many copies were purchased during the 12-year period.

Amazing, especially when you look at what they determined as “overpayment” per user:

For each copy of Microsoft Windows or MS-DOS, customers can claim $16 per copy, Microsoft Excel is worth $25 a copy and Microsoft Office, $29 a copy.

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