Software is too expensive
This article explains how Microsoft's efforts at delivering a lower-priced, slimed-down version of XP isn't doing so well in bootleg-saturated areas of Asia.
How does a price cut help if you're removing features? It doesn't, we want our software and we want it cheap. If it's not cheap most people will find a way to get it for free.
Now I believe that if all of these companies would price their software at reasonable prices more people would actually buy them. For instance, *most* people have a real problem paying the ~$300 for once license of Windows XP. ( amazon.com )
The same goes for Macromedia's and Adobe's products. Macromedia Studio MX 2004 is going for around $1,000 dollars and Adobe's Creative Suite is over $1,000 dollars.
I could see paying $100 for windows and $300 for Macromedia's and Adobe's Development Suites. Then it would be worth it. I think these software companies are loosing out on serious revenues to so many people that want to do the right thing, but can't afford it. But I'm sure some bean counter in all these companies work out some fancy numbers to find the right balance with the maximum return.
I just had to get that off of my chest.