Microsoft hates piracy, and who can blame them? Windows is probably the most pirated software title in the world. In nations such as China and India, piracy of Microsoft software has reached stupendous heights. Just think of all that revenue that Microsoft is missing out on. Now, think about Microsoft thinking about it.
Ballmer believes that one way to curb the tide of piracy is to offer consumers in emerging countries a low-cost PC. He believes that we need to engineer a "$100 computer to go down-market in some of these countries" in order to make this extensive piracy less attractive. More here.