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Microsoft Corp has slashed the price on its Windows Vista operating system in China by more than half, in a bid to curtail piracy, The Wall Street Journal reported on Monday.

Beginning August 1, Microsoft cut the retail price for its Vista Home Basic package to 499 yuan (US$66) from 1,521 yuan, and its Vista Home Premium package to 899 yuan from 1,802 yuan, the report quoted the company as saying.

The price cut is the latest tactic by the Redmond, Wash, software company in its efforts to spread legitimate products in the China market, said the report.

"Pre-installed Windows Vista is already getting popular in China," Microsoft spokesman Jim Lin was quoted as saying. "This program gives customers who bought a computer before the Vista launch an opportunity to upgrade."