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Surface RT to cost $199?

microsoft surface tablet windows 8 windows rt

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#16 .Neo

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Posted 14 August 2012 - 15:49

There is no way it would be that price. How would other hardware manufacturers be able to compete with that ?

They wouldn't be able to. Hell, even Microsoft will loose money per unit sold. It revolves around building name only. See it as a long-term investment for the company. But they could end up driving their partners away or into bankruptcy eventually. I suddenly understand why ASUS is so afraid of the Surface.

The whole tablet race is starting to remind me of the "Supermarket Wars" we had here in the Netherlands in 2008. All large supermarket chains went thermonuclear by lowering prices by incredible amounts. Commercial blocks became saturated with different supermarket ads announcing price cuts. At one point the groceries I'd normally get for €150 cost me more than €50 less. It was great for us, the consumer, but some companies almost went bankrupted because of it. A lot of products were being sold at great loss. As a result not only the supermarkets got into trouble after a while, but also smaller grocery stores which just couldn't compete anymore.


#17 Mr Nom Nom's

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Posted 14 August 2012 - 15:56

If $199 is the launch price with no strings attached then I think it'll not only cause damage to Android on the tablet but iOS but the question is are they going to do something stupid and making it a US only launch? Zune was launched as US only and it took so long for international customers to purchase it that all buzz pretty much died over night. Microsoft has all the ingredients to make a great product launch which leads me to wonder whether they're going to sabotage their own product launch by doing something stupid like it being US only.

#18 giantpotato

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Posted 14 August 2012 - 15:57

They wouldn't be able to. Hell, even Microsoft will loose money per unit sold. It revolves around building name only. See it as a long-term investment for the company. But they could end up driving their partners away or into bankruptcy eventually. I suddenly understand why ASUS is so afraid of the Surface.


Exactly. Both Sony and MS did the same with the PS3 and Xbox 360 at launch. Each unit was sold at a loss.

#19 threetonesun

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Posted 14 August 2012 - 15:59

Wouldn't be a huge surprise, MS did sell the Xbox (both of them) at a loss for a while.

#20 vetDirtyLarry

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Posted 14 August 2012 - 16:01

Exactly. Both Sony and MS did the same with the PS3 and Xbox 360 at launch. Each unit was sold at a loss.

Yeah, but the BIG difference in that example is they both also had games that were meant to run on those units and that is where they made their money. You can technically pick up one of these and never buy a single piece of software for it. Now that likelihood of that happening is not very high, but it could happen. Where a games console, there really is no question about it, one will eventually purchase games for it.

#21 jakem1

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Posted 14 August 2012 - 16:04

If $199 is the launch price with no strings attached then I think it'll not only cause damage to Android on the tablet but iOS but the question is are they going to do something stupid and making it a US only launch? Zune was launched as US only and it took so long for international customers to purchase it that all buzz pretty much died over night. Microsoft has all the ingredients to make a great product launch which leads me to wonder whether they're going to sabotage their own product launch by doing something stupid like it being US only.


This is my concern too.

Yeah, but the BIG difference in that example is they both also had games that were meant to run on those units and that is where they made their money. You can technically pick up one of these and never buy a single piece of software for it. Now that likelihood of that happening is not very high, but it could happen. Where a games console, there really is no question about it, one will eventually purchase games for it.


Microsoft will make money from app sales through the Windows Store.

#22 .Neo

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Posted 14 August 2012 - 16:06

Yeah, but the BIG difference in that example is they both also had games that were meant to run on those units and that is where they made their money. You can technically pick up one of these and never buy a single piece of software for it. Now that likelihood of that happening is not very high, but it could happen. Where a games console, there really is no question about it, one will eventually purchase games for it.

With a tablet people for eventually purchase apps for it. Keep in mind Windows RT doesn't run any x86 Windows apps.

#23 Josh the Nerd

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Posted 14 August 2012 - 16:06

Microsoft will make money from app sales through the Windows Store.


Wouldn't the average customer have to buy hundreds of dollars worth of apps to make up the difference?

#24 giantpotato

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Posted 14 August 2012 - 16:07

Yeah, but the BIG difference in that example is they both also had games that were meant to run on those units and that is where they made their money. You can technically pick up one of these and never buy a single piece of software for it. Now that likelihood of that happening is not very high, but it could happen. Where a games console, there really is no question about it, one will eventually purchase games for it.


I'm guessing they're hoping people buy from the App store, failing that, I hear they have ads in some of the included apps. With the inclusion of Xbox live in windows 8, I'm guessing people already familiar with XBOX are more likely to buy games/apps for the surface, especially if there's platform cross compatibility with certain games.

#25 .Neo

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Posted 14 August 2012 - 16:08

If $199 is the launch price with no strings attached then I think it'll not only cause damage to Android on the tablet but iOS but the question is are they going to do something stupid and making it a US only launch? Zune was launched as US only and it took so long for international customers to purchase it that all buzz pretty much died over night. Microsoft has all the ingredients to make a great product launch which leads me to wonder whether they're going to sabotage their own product launch by doing something stupid like it being US only.

Microsoft does have a lousy track record when it comes to international launches in recent years. I'm not getting my hopes up seeing the Surface in stores before 2013.

#26 vetDirtyLarry

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Posted 14 August 2012 - 16:08

Microsoft will make money from app sales through the Windows Store.

What if a person only picks one of these up for surfing the web and checking email? What apps do they have to purchase? None.
Sure, they will buy a few apps here and there to check them out, but can MS afford to cut the overall cost of these tablets hoping people buy apps? I do not see how any rational person could make that decision and feel confident in doing so. perhaps they may, and I hope they do for all of our sake, but does not seem like a sound business decision IMO. That is why I personally am not convinced this news is real.

#27 .Neo

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Posted 14 August 2012 - 16:09

What if a person only picks one of these up for surfing the web and checking email? What apps do they have to purchase? None.
Sure, they will buy a few apps here and there to check them out, but can MS afford to cut the overall cost of these tablets hoping people buy apps? I do not see how any rational person could make that decision and feel confident in doing so. perhaps they may, and I hope they do for all of our sake, but does not seem like a sound business decision IMO. That is why I personally am not convinced this news is real.

What if a person only buys a handful of games and hardly any accessories? It's a risk Microsoft takes.

#28 BajiRav

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Posted 14 August 2012 - 16:14

Microsoft will make money from app sales through the Windows Store.

I don't think the Xbox model will work with tablets. :/ The app prices are too low to sustain it. I have been using iPhone/iPad for a while and there is not a single app I have actually bought on them. I use it for browsing, skype and some free games. I am sure I am not alone in this regard (although I did purchase some games on my WP).
If this rumor is true, I think Microsoft will be just selling it at loss to buy market share. I think Google is doing same with Nexus 7 (except it's no profit no loss model for hardware).

In other news: Microsoft Surface Touch Cover and Type Cover to cost €299 and €399 respectively?

If RT is really $199, then those keyboards are sure to cost $69.99 and $99.99 respectively :p
I wonder if this is a launch promo?

#29 vetRadishTM

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Posted 14 August 2012 - 16:19

I'm getting the pro version myself. But if its 199$ ill buy it when it comes out JUST TO HAVE IT. Then sell when pro is available.


Ditto.

#30 xankazo

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Posted 14 August 2012 - 16:24

If that's the real price, getting one is a real no-brainer!!!