Selling for less in China?

A reader asks why Microsoft's Vista OS costs $200 in the States and $70 in China; the Gripe Line investigates

In response to the recent discussion about software piracy, Stephen wrote, "Piracy is always bad and unjustified and almost always illegal. You should ask Kristen how she would feel if people used the fruits of her labor for free."

Well said -- I absolutely agree. But Stephen also raised a more difficult question about piracy: How much does the high cost of software contribute to piracy? This is hard to answer, but it is certainly more tempting to pirate something that costs $700 than something that costs $70. Still the answer is much more complex than simply "lower the cost of software," as many of you pointed out. But with that question, Stephen asked what he termed "a tangential gripe":

"Why does software costs less in foreign countries when the software is created in the US? A while back I read an article in PC World about the cost of Microsoft's Vista OS. In China, a legal copy cost about $70 USD, whereas, in the US it costs about $200. This is the price set by Microsoft. Why do Americans have to pay a premium for US created software?"

I put this question to Microsoft. Heather Vaughn, a spokeswoman, responded that this pricing is not a permanent situation. It's a sale. "This was a limited-time price reduction exclusively for Mainland China during China's National Day holiday season," she explained. "Reducing piracy is complex and cannot be addressed with price alone. This promotion is about making genuine Microsoft Office more visible and affordable in China during this holiday period."