[snip]
>Joe,
>
>I don't think that MS will reduce prices significantly if their profitability increases because of this. Rule of thumb is that prices are dictated by what hte market will bear. If other software manufacturers don't see the same sort of reduction (I'm talking about those who make competing products), all MS will do is lower their prices enough so that they're the low cost leader. Doesn't have to be by much either. What happens then? More people will buy more MS products.

"Other software manufacturers"??? Nobody makes money competing head to head with Microsoft. They'll lose their investment when (not if) MS folds their product into the OS. However, since Linux is not being made 'for the money' and essentially costs $0 bucks, do you think Microsoft will lower their OS price enough to become the 'low cost' leader? I.E., pay people to user WinXX? :)