Micro(soft) Economics?

Am I missing something here? Microsoft is cutting the price of Vista for the Chinese market. Cutting it half.

They say they're doing it "to meet market demand." Now that phrase could be taken any of several ways, and they're obviously trying to spin it as positively as possible.

But cutting the price strongly implies they're not able to charge as much as they'd like, that the market isn't bearing the original, higher price.

So either their anti-piracy efforts aren't working, there's not as much demand as they'd anticipated, or both.

Couldn't happen to a nicer company.