Microsoft’s anti-piracy blackscreens are making Chinese users see red

Customers, she said, have a main complaint about Windows XP. "The real thing is definitely too expensive. They can download it or buy it pirated for 10 yuan," or less than $2, she said. "The real thing is hundreds of yuan. What do you think?"

That easy availability threatens Microsoft's potential profits.

Microsoft Chief Executive Steve Ballmer told a business forum last month that China will surpass the United States as the largest consumer market for personal computers within two years. But software piracy in China has undercut sales of the real thing, keeping Microsoft from meeting revenue growth targets, according to Chief Financial Officer Chris Liddell.

The focus on the Chinese consumer has grown with the China market. For years, Microsoft aimed its anti-piracy campaigns at businesses, the government and other large customers. Two years ago, the Redmond, Washington-based company began signing deals with computer makers both inside and outside China to install genuine versions of its software before PCs reach the stores.

Duncan Clark, chairman of BDA China Ltd., a Beijing tech consulting firm, said the updated Genuine Advantage push is likely an attempt to use shame to target business customers and professionals who do not want to be seen using a fake product.

"There's a little bit of a Big Brother effect," said Clark. "As for the youth, Microsoft probably couldn't win them over in any case."

The move has only increased bitter feelings toward a company perceived by many to charge too much.

"There's absolutely no need for such a monster cash cow like Microsoft to take this obviously dramatic step and make itself the No. 1 enemy of most Chinese PC users," said Steven Lin, a spokesman for the video sharing Web site Youku.com, in an e-mail. "Business/government users are their primary income source in China, how much more can they squeeze from ordinary users who can make on average $500 (3,400 yuan) per month? They're crazy!"

So far, the Chinese government has made no comment, though the Web site of People's Daily, the Communist Party's flagship newspaper, allowed plenty of room for Chinese to vent.

As of Thursday, almost 80 percent of more than 10,000 people responding to a poll on the site said Microsoft should solve the piracy issue by further lowering its prices.

Still, with piracy rampant across the country, lower prices might not be enough.

As the day of the black-screen update loomed in China, a poll taken by the popular Tencent QQ instant messaging system showed 84 percent of the more than 90,000 respondents said they were using pirated software - and 60 percent said they'd keep doing so.

"Actually, I'll still use pirated software," said 24-year-old Shanghai advertising salesman Tai Chenggong, whose screen turned black this week after downloading a fake copy of Windows for free. "It still works, no problem."

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 China Internet cafes forced to switch to Chinese OS in move portrayed as piracy crackdown 
Microsoft Windows Vista sits on display inside an Office Depot in New York, Thursday, July 26, 2007. (Bloomberg News)

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