There is a generalized belief that if Microsoft software were dirt cheap, piracy would no longer be an issue. But how low will Microsoft have to go? The Redmond Company is currently undergoing an experiment down under.

Australian students have been able to buy a full license of the 2007 Microsoft Office System for just $75. Now while $75 may still represent quite a lot - compared to the maximum of $10 that counterfeit copies cost, or to the free pirated editions available over peer-to-peer networks - it is still a lot less than the official Microsoft price.

The Redmond Company's estimated retail price for Office Ultimate 2007 is no less than $679. In this context, $75 is a consistent discount, even when compared to the upgrade price of $539. But more importantly, $75 is an affordable price tag. However, APC reported that $75 Office Ultimate 2007 only attracted a mere 15,000 buyers.

"While our initial efforts were concentrated on universities, we will be looking to roll it out more widely based on the success of this program," revealed Jane Mackarell, Education Marketing Manager, Microsoft Australia.

Microsoft's official position is that the numbers are favorable and that the initiative is indeed designed to offer students an alternative to pirated materials. In addition to lowering the price down to just $75, Microsoft has also enabled users to purchase one-year licenses of Office 2007 Ultimate for just $25.

But drawing the line, 15,000 purchases represents a modest accomplishment for Microsoft. And in fact, the poor customer response could also deliver a counter argument to the relation between cheap prices and pirated software.