Reducing prices is only one part of the equation. Obviously developers cannot reduce the prices of their products tenfold. They can reduce it, but only go so low.
The next part of the equation is the Indian mentality, which is slowly changing though. "Why go for something good that costs 100 bucks when you can get something cheaper for 99.99 bucks?"! With that kinda mentality, piracy will never go away.
As godzi_85 said, people are willing to pour 35k on a slick computer but turn away from getting a legal copy of Windows XP, for example. Now this is really sick.
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