What appears to be happening in the UK is that Design Houses are moving to Indy, it's cheaper, basically for the price of any flavour of CS you're getting Indy for free (and better functionality), you're gonna buy PS and Illy anyway... Adobe are giving away Indy... Publishing (News and Magazines) is hanging with Quark because of legacy automation xtensions, that are being sold at a heavy discount (relatively) for the upgrade, though there is a lot of movement away from Quark in that market
The only way Quark can retaliate is give away Xpress because no one is buying? Hmm, not sure about that business model.
As a side note Extensis are in a similar situation with Suitcase, Linotype could potentially wipe them out.
If you were putting a new production department together, why would you put Extensis or Quark on the shopping list? You wouldn't, I'm not.
For a further rant on this topic go here
Quark gains 700 hundred extra user licenses. « nergalicious
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