Not all software can be priced at RMB28, or RMB10. Revenues must cover development costs and secure acceptable profit levels. Large and complex software either requires too great in costs or serves too limited a user base. Windows 2000 or WPS2000 could never be priced as low as pirated versions. Instead, analysts argue, software companies should focus on the improvement of their production scale, distribution efficiency and after-sales services.
Some observers remain pessimistic concerning the results of the price-cutting strategy.
The most frequently and widely used software makers, such as Microsoft, have not lowered their prices. In a second strategy to combat pirated software, Chinese software companies are beginning to focus on the improvement of sales channels and after-sales service. Shen Yang, director of Popular Computer Week, the biggest newspaper in the computer industry in China, warned that defeating software piracy would be impossible without huge investment in improving marketing and service. In some cases, the after-sales service of pirate vendors exceeds that of authentic manufacturers. Currently, a consumer can order pirated software by telephone, and if dissatisfied with the quality, the software will be replaced without charge.