Is this not the same kind of argument companies make against piracy? I think it's not so much a pricing problem than it is a service problem. In the same way that people rely on Steam rather than pirating every single game on the market, it's the services that are offered rather than the price that has to be paid.

Say you go ahead and do this - what guarantees will you make with that price? Guarantees like priority support and timely package updates cost money, which doesn't sound viable unless the big company is setting absurdly high prices, in which case, that just sounds like competition.