Yahoo! News - Microsoft Unveils Licensing Discounts To Counter Linux. So what they're saying is they can afford to lower their prices. If they feel like it.
This article also suggests that MS's latest grab for money may be the final push many smaller organisations need to go Open Source or investigate other low-cost alternatives. This is encouraging... especially considering that kids might go to school and learn to use something other than Microsoft products. The flow-on effects could be really positive - when kids end up as university IT students, they'll be more likely to think outside the Microsoft box, for instance.