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That's short-term thinking. If students don't use your products, they won't when they turn into tomorrow's professionals. Lots of successful companies have been doing this for many years. $60+ per month is way too expensive. Thankfully for them, piracy is widespread enough to ensure that GIMP's ugly interface keeps students from switching to it.

This is refreshing. I love economic arguments.

Does software like Adobe's typically show increasing returns to scale though?

>Better to sell to one professional

Exactly, they only have to support a small group of professional users.

>who will pay $1000 than 10 student/hobbyists who will pay $60

I see what you did there...

At the end of the day is though whether Photoshop costs $60 oor $600, I think most students/hobbyists will pirate it anyway.