Earlier quoted context omitted.
Seems like there were three options: 1. Ship Word with Windows and not get paid for it, even though they had hundreds of engineers working on it. 2. Ship no word processor with Windows, and make the end user find one on their own. 3. Ship a basic one and let the user upgrade to Word if they needed something more. At the time with option 2, it's not like you're going to hit google and download some FOSS solution - you…
Microsoft had a cheaper office suite that they sold as a middle ground. I remember the "poor" kids in highschool couldn't edit their papers in certain ways at home and had to do some things on school computers instead. https://en.m.wikipedia.org/wiki/Microsoft_Works
The irony was that Microsoft included Microsoft Money in the Works suite, likely to give an aspiration of saving and making enough in order to upgrade to the Office suite.