[kelnos]

Predatory pricing exists when you try to take over a market by selling something so cheap, other competitors are driven out

This doesn't really hold for something that doesn't have to be physically "produced" like a software license. If that were the case, you could accuse every open source alternative of engaging in predatory pricing. Usually you see this term applied to physical goods, when a company sells them at or below cost for the sole reason of forcing out a competitor who cannot stay in business doing the same.

... or prevented from entering, since they couldn't recoup the costs involved in developing a product.

Well, Android started as a little company that Google eventually bought. There's no reason why someone couldn't do something similar. The barrier of entry is pretty low, at least for the software stack. Getting it onto real devices is another matter, but I don't think that part is particularly relevant here.

Hell, there's no reason why MS couldn't license WP7 for free. They just choose not to.