Microsoft Corp., which is seeing slowing sales of its Office word processing and e- mail software, said it's considering a lower-priced version of the program designed for consumers.

Microsoft will release a new version of Office11, which costs $240 to $580, in the middle of next year. The company is mulling the pricing of the next update and may sell a version with fewer features to attract cost-conscious consumers, said David Jaffe, an Office lead product manager.

Microsoft gets about a third of its sales from Office. Revenue from Office grew less than 1 percent in the fiscal year ended June 30, as customers balked at spending several hundred dollars for a new version of the software when many already have an older one, analysts said. The program also faces competition from cheaper products such as Sun Microsystems Inc.'s StarOffice and the freely distributed OpenOffice.

Finally, they understand that not all people can paid over $500 for their suite :D

Mmmh, I think you guys are being a just little hard on "poor" old M$!!. Why just 2 weekends ago I attended a Computer Swap meet where there were plenty of Ofice XP's available for prices ranging from $5 to $18. Doesn't seem unreasonable to me....