Yes, but pirated Windows actually works better for Microsoft than free Windows. Why? Because at least they can keep asking $200 with a straight face for a version of Windows, if Windows is just pirated in countries like India or China.

But if they give it for free there - then the whole equation changes in western countries, too, and people will be demanding they get a free version of Windows as well - and then how will Microsoft make money?

Anyway, I don't think Microsoft will do this. At best they will either make it free for OEM's - not consumers - so their devices don't cost more compared to Android devices at the same specs, or they give a free version of Windows that's so crippled people will still prefer the pirated "Pro" edition.

Either way, I truly believe Microsoft will get out of the consumer market within a few short years, because they won't be profitable in it anymore, either because of forces they can't handle, such as simply losing market share and people not wanting Windows anymore, or because they give it for free, and as I said, that will get everyone to not buy Windows anymore anyway, if they truly give it away for free.

Whichever way they go, Windows is getting commoditized, and it's not good for Microsoft. This is a reactionary move, and reactionary moves are never good.