Encarta gone?

I read recently that Microsoft shut down its encyclopedia Encarta.
Brought back a few childhood memories when Encarta was the sole source of doing class projects. For picture, information... our very own know-all.
God wish someone had predicted what Google and Wikipedia combined would do.

Then you look around and see it happening in other things as well: newspapers for instance.
So if you are in Encarta's position what do you do?
Provide your information free? Go for a premium subscription with most of it free?

Its tough to compete when you know your opponent gives it for free. And almost impossible to displace it.
How does one compete with Wikipedia?

But maybe someone can attack Wikipedia's weakest link:( which is why it can do so much for free):The credibility and source of information since anyone can edit it. Thus Wikipedia can never be quoted as a reference anywhere legitimately.

For an instance even if I find some piece of useful information for my articles on Wikipedia I am never allowed to quote them. So I spend so much more time searching for places which I can provide as authentic references.

How about a site which provides us information and also legitimate sources for references to quote in articles, projects, papers. Limiting who can contribute and making it a knowledge powerhouse.
I hope someone does this in the future.