I think reasonably priced software will definitely reduce piracy.
But some people find it hard to pay for software (even hardware

)
Another thing is they complain about "the loss" when in reality it is an opportunity loss, not an actual loss.
And even that number is not correct. Not everybody is willing/capable to pay that price.
So for some people, the answer to no software or legit is no software.
Of course, there is the age old logic (which is perfectly correct) if you really need it then buy it.
But, for some reason I was under the impression that piracy has dropped.
Microsoft is implementing very strong anti-piracy methods.
And I would guess that they are hit the hardest.