Microsoft has slashed the Chinese price of its Office suite for home users by more than 70 per cent in a promotional campaign aimed at persuading consumers in the piracy-plagued market that licensed programs can be affordable.

The promotion brings the cost of Office Home and Student 2007 in China from Rmb699 to only Rmb199 ($29) – a level less than one- seventh of the retail price Microsoft was recommending for the suite of word-processing, spreadsheet and presentation software just three months ago.

Microsoft's Windows operating system and Office suite are ubiquitous in China, but the majority of users have long relied on pirated copies. The piracy rate for personal computer software in China was more than 80 per cent in 2007, according to the Business Software Alliance.