Is It A Steal Or Did They Blink?

Microsoft (MSFT) today announced “The Ultimate Steal” deal for Microsoft Office 2007 that gives students a chance to buy Microsoft Office 2007 for $60, a deep discount of 91%. (In comparison Microsoft Office for Mac costs $150 for Student and Teachers Edition.)
This might be small price to pay for the company since it is ensuring that people continue to use its productivity suite. But is it too late? Paul Stamatiou writes:

Granted most of my classmates pirated Office 2007, use Google Docs or use OpenOffice, had Office 2007 been priced under $100, things would have been much different.

I wonder what the students think about this offer – that should be more telling. On a different tangent, will this discounting prompt other customers to ask for deep price cuts as well? If that happens, then it could put Microsoft’s cash cow on a crash diet, giving Office wannabes a chance to gloat.
Ashkan Karbasfrooshan sums it up best when he writes: god bless competition.