Microsoft slashes Vista price in China

Microsoft has more than halved the retail price of its Vista operating system in China in order to curb piracy, Reuters reported Friday.

According to the report, from Wednesday the Home Basic edition of the Vista was priced at US$66, a US$135 drop from US$201, while the Home Premium package dropped US$120 to cost US$118, from US$238.

The decision was a move against China's rampant software piracy, as the cheaper price was to act as an incentive for users to buy the original software, Reuters reported, quoting The Wall Street Journal. Other sources also report the move to be in response to market demand for the operating system.

Sources speculate that the dramatic price cut for the Chinese market may have its implications of Microsoft's markets in other parts of the world. The software giant had sold 60 million Windows Vista licenses globally by end June.

Already 20 million copies were sold from mid-May, the company said in July.

As such, in order to lessen discontent, sources report Microsoft to have plans to sell variations of the Vista, such as the Vista Business and Vista Ultimate versions, at a lower price.

The latest version of its dominant Windows operating system was released January 30.