I don't understand why Microsoft doesn't drastically reduce the price of their Windows instances.

Microsoft is matching all of AWS prices, which means the Windows servers are more expensive than the Linux servers. Why not set your Windows server prices as the same as your Linux servers since you don't have to pay the licensing to yourself. This would make azure the easy choice for those running Windows servers.

Maybe I'm missing some anti-competition law here or something, but it sounds funny that Microsoft is price matching Amazon's prices on Microsoft Windows Servers.