"Virtual PC 2004 is built on Virtual PC for Windows, one of three virtualisation products Microsoft bought from Connectix in February. The $129 estimated retail price for the Virtual PC 2004 is a drop from the $229 Connectix price. The competing product from VMWare, VMware Workstation, is priced at $299 (£179) when delivered online, or $329 in a box." See Computer Weekly.
Comment: The price isn't too surprising since Microsoft has already released a version of Virtual PC for Mac users for $129. However, it is a rather small price cut by Microsoft Windows standards -- not even halved! On past form, it should have been more like $79.99, if Microsoft was targeting the consumer market.