Microsoft Surface RT to cost $199.99? Doubts ensue

Get out a pinch of salt as a new rumor from Engadget is stating that the Microsoft Surface for Windows RT will cost a budget friendly $199.00. The source, of course, is anonymous but the price point, which we hope is true, will make the Surface RT an extremely attractive product in the mobile segment. 

While we cannot confirm the price point, Engadget states their source learned at Microsoft's Techready 15 conference all of the launch details for the upcoming product, including the $199 price point. If Microsoft does ship the Surface RT at this price, it will certainly be hard for vendors such as the recently confirmed Dell, Asus, Samsung and Lenovo to compete unless they can find ways to subsidize their own hardware.

We recently wrote up that the Surface RT pricing will tell us how confident Microsoft is about Windows 8 and if the above price point is true, Microsoft is playing for market share, not revenue. But, the revenue would appear in the long run as consumers purchase applications from the Microsoft Store which nets 30%/20% of the revenue back into the pockets of Microsoft. 

The price point of $199 almost seems to good to be true but we hope the source is correct as it will be a big win for the consumer and Microsoft too. 

But! There is one issue we have with the price point, back in June when the Surface was announced Microsoft stated the following:

Suggested retail pricing will be announced closer to availability and is expected to be competitive with a comparable ARM tablet or Intel Ultrabook-class PC. OEMs will have cost and feature parity on Windows 8 and Windows RT. 

Based on that statement, it would suggest that either all of the Windows RT products will be priced close to $199 or this is inaccurate information. Either way, we will all know soon enough. 

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IMHO, this rumor is bad for MS, because you can't price a full featured Win8 tablet the same price as the Kindle Fire. So once the correct price is announced, potential customers will be disappointed. MS didn't announce anything to begin with, but they end up loosing.

Yay, another super locked down and unnecessary device to spend your money on -- wait I thought the Economy was bad?. Apparently not bad enough if people have money to burn on junk. @SevenBefore: They're not getting back into anything, they played this game too late.

If you look at it realistically, they might as well take the loss on every tablet anyway, since they are way behind in the tablet market. They're sitting on what ($30-50 billion in cash)?? They either spend that money on buying some whizbang company, and try to integrate the hardware and developers, with no guarantee of success, or they could just subsidize the hardware price and get back into the tablet market in maybe 2-3 years. I say do it Microsoft, you've got nothing to lose if you really want to compete in this space.

plus they can save on taxes.

SevenBefore said,
If you look at it realistically, they might as well take the loss on every tablet anyway, since they are way behind in the tablet market. They're sitting on what ($30-50 billion in cash)?? They either spend that money on buying some whizbang company, and try to integrate the hardware and developers, with no guarantee of success, or they could just subsidize the hardware price and get back into the tablet market in maybe 2-3 years. I say do it Microsoft, you've got nothing to lose if you really want to compete in this space.

I'll take 20RTs at 199.99 and 10 WinPros please. :0) Even if its like 250-300 It still more then worth it. Finally a real tablet not some toy.

If the point of the Surface is to jumpstart Windows 8 tablet production with innovative designs from OEMs, how will selling them at $199.99 achieve that? OEMs won't be able to compete or will cut corners to do so. I just don't see this happening for several reasons, but if it does, I'll definitely pick up one (or two) Surfaces.

Although its a very low price , its not a surprise for me. Remember what MS did for XBOX 360. They under-priced it and made sure its dominating the market then slightly raised the price.

Suddenly more interested. Maybe that's the plan. Get people who normally wouldn't give a second look a reason to take the first...then price it at $399. Can't see it happening, but if it does, Like everyone else, I'm in.

I think that one thing people may be missing from this is that MS spends a lot of money on R&D. This could be placed on that line on the books. It is an in-house project and not a partnered device. No one else is getting any credit for this and with positive feedback it could turn around the perception of what MS is at the moment. MS can hit several points with the Surface... marketing--research--ecosystem tie in. I think this is a larger play and will lead to more OEM devices being better and selling more. (My opinion)

If this is true and there is a port of MS Office for it, I cannot begin to imagine how many comapnies would purchase it.

DoctorD said,
If this is true and there is a port of MS Office for it, I cannot begin to imagine how many comapnies would purchase it.

Doesn't RT come preloaded with Office? I swore that's what I read somewhere. But yeah like you say, put Office on it and companies might eat it up. Move over Lenovo.

scaramonga said,
Suppose they gotta get folks interested in that heap of crap OS somehow

it isn't crap, imo. that's exactly how I felt before i tried it for a long time. after having gotten used to it for a few months, I can safely say that it's just as productive, if not more, than windows 7 or any other windows os to date. the interface is nice and clean, and switching to the desktop is very fluid and quick. i can look at all the important stuff if im on the go. I just open it up, check the start menu for all the little things i want rather than going to the desktop and opening up all the websites to check the info. in my opinion, it's very efficient and lovely to use.

Game consoles are a very limited market - only Sony and Nintendo were players and each console has a vertical market. So MS was able to become the 3rd player.

Tablets are a very different space, there are tons of oem's who compete for narrow margins (unless you're Apple). MS simply cannot afford to alienate them all.

A $199 Surface would be the equivalent of a $100 laptop made by MS, it wouldn't go over well with Dell/Acer/HP etc.

While i like the price, the fact that the RT. ersion will be incompatable with the non-RT Windows 8 will lead to confusion, or not much adoption by the Developer community. Especially compared to the Intel Win8 Surface.

I do hope that the RT kicks off and does well to where it is heavly developed for.

Hell-In-A-Handbasket said,
While i like the price, the fact that the RT. ersion will be incompatable with the non-RT Windows 8 will lead to confusion, or not much adoption by the Developer community. Especially compared to the Intel Win8 Surface.

I do hope that the RT kicks off and does well to where it is heavly developed for.

Modern apps will run on both platforms, unmodified.
I know of dozens of interested developers. Just you wait.

deadonthefloor said,

Modern apps will run on both platforms, unmodified.

No, Kiddie-grade Flash style applications (like you find on the iPad Touch+, er, iPad) will run on these gimped tablets, like the iPad.

For real applications, you'll need to run the intel version.

XerXis said,

and that is false

Then go tell Balmer he is wrong,

But where is your proof that says that its false, everywhere i have read, including the Keynote. Says it is true. RT cannot run Programs outside of Metro Apps designed for RT. Why do you think it comes with Office, if it was compatable with Intel they wouldnt be throwing a $500 software package for free.

For me, my only option is to get the Intel Variant so i can actually run stuff if need be.

Hell-In-A-Handbasket said,

I was getting info from http://www.computerworld.com/s...ce=CTWNLE_nlt_pm_2012-06-18 that states they are indeed incompatable, intel cant run RT apps, RT cant run Intel Apps

You aren't reading the article correctly.

WinRT Apps will run on Arm and x86 versions of Win 8.
You can only run WinRT apps on the Arm version of Win 8.
You can run WinRT & legacy windows apps on the x86 version of Win8.

WinRT apps won't run on any previous version of Windows (Xp, Vista, 7).

SledgeNZ said,

You aren't reading the article correctly.

WinRT Apps will run on Arm and x86 versions of Win 8.
You can only run WinRT apps on the Arm version of Win 8.
You can run WinRT & legacy windows apps on the x86 version of Win8.

WinRT apps won't run on any previous version of Windows (Xp, Vista, 7).

" So I'm guessing that apps designed for Windows 8 -- or older version of Windows -- won't run in Windows RT. You are correct. Programs designed for Windows 8, the operating system that runs on devices powered by Intel's x86/64 processors, will not only not run on Windows RT, they're not even allowed to try. With a few exceptions..., because there are always exceptions. "

the exception being Metro Apps

How am i reading that incorrectly

Nothing new. Much like what they did w/ the otiginal xbox; Weren't the losing $300 for every xbox console sold, but only to recover from game sales?

I think this has to be a FUD price from the Acer CEO.
If it were true, then
a) MS is going to take a huge loss on them
b) who's going to buy anyone else's RT device?

Tell you what, if the price for a Surface (all in) ends up at $199 then i`ll buy 3, keep one for myself and give the first 2 people who post after this the others.....

Riggers said,
Tell you what, if the price for a Surface (all in) ends up at $199 then i`ll buy 3, keep one for myself and give the first 2 people who post after this the others.....

You have now entered into a legally binding contract, if you do not deliver I will sue you

Riggers said,
Tell you what, if the price for a Surface (all in) ends up at $199 then i`ll buy 3, keep one for myself and give the first 2 people who post after this the others.....

Does this count as the 2nd post ?

Riggers said,
Tell you what, if the price for a Surface (all in) ends up at $199 then i`ll buy 3, keep one for myself and give the first 2 people who post after this the others.....

Give one to me please

Honestly, even if this tablet was 1000x better in specs and costed $99 and the iPad went up to $2000, people would still throw their savings accounts at Apple. This is not a war that can be won with seemingly logical things like, good design, high specs, fast responsive software, and low prices. Apple has a level of religiosity surrounding it right now that the other players will have to weather until people get bored the Apple logo.

Iridium said,
Honestly, even if this tablet was 1000x better in specs and costed $99 and the iPad went up to $2000, people would still throw their savings accounts at Apple. This is not a war that can be won with seemingly logical things like, good design, high specs, fast responsive software, and low prices. Apple has a level of religiosity surrounding it right now that the other players will have to weather until people get bored the Apple logo.

You sir don't know what is happening in the tablet market.

that's just not true, Apple is market leader in one place, the tablets. And that is because there are no good alternatives to the ipad.

Iridium said,
Apple has a level of religiosity surrounding it right now that the other players will have to weather until people get bored the Apple logo.

People with Apple blinders on said the same thing about the iPhone before Android...and who has the majority market share now?

Iridium said,
Honestly, even if this tablet was 1000x better in specs and costed $99 and the iPad went up to $2000, people would still throw their savings accounts at Apple. This is not a war that can be won with seemingly logical things like, good design, high specs, fast responsive software, and low prices. Apple has a level of religiosity surrounding it right now that the other players will have to weather until people get bored the Apple logo.

Certainly don't count MS out. They want badly to get a firm hold in mobile/tablet. They got money to spend and we, as customers, benefit.

This cannot be true, judging from the specs that we do know about, there is no possible way these tablets are going to be priced 200 USD. Unless Microsoft is in the loosing money game.

If the pro version costs $300 then, I'd buy it. I'm in the market for an ipad clone and don't want to give Apple anymore money.

Azies said,
If the pro version costs $300 then, I'd buy it. I'm in the market for an ipad clone and don't want to give Apple anymore money.

Yeah... a tablet with ultrabook specs for $300. The pro version is not competing with the iPad... it is a full-blown OS.

I believe it to be a possibility. If they release RT at $199, it pushes adoption. RT is a whole other story than the x86 versions coming later. They don't have to offer a discount on the x86 versions. That's why I believe RT will be sold at $199 and the x86 will start at $599 and up to $899.

Mannnnnn, no way !! Priced competitive ( like Balmer said ) would start around $399 and go up. I can HOPE they start at $249, but still can't see it. This is a Surface, not some budget made android tablet (not including the Nexus 7...that has a different play ).

But, I can see MS waiting to see if Apple releases some 7inch $249 iPad mini. Then I believe they will have to price Surface RT at that price.

And again, Microsoft needs...NEEDS Windows 8 to fly. Because they already said, can't find source, that their target for WP8 are Win8 users. I think its importatnt for both platforms if Win8 gets into as many hands as possible.

I can dream of a $199 Surface, but I seriously doubt it.
But like someone else said, at that price, I will go buy one for every room. One step closer to having a Star Trek house !! lol

GenBlood said,
The price is right ... Looks like I'm going to get one .... When it's released
in Oct ...

Only if you have a couple of hundred more than that ludicrous price listed above, or if they severely cripple the device. Google's Nexus 7 is a baby compared to Surface. That's why that's as cheap as it is. No way will Surface be in that price range. So get that out of your head asap

I don't see this happening. If Microsoft's statement is meant to reflect on anything then they'll mean Android Pads like the Asus Transformer line kind of pricing.

Tony. said,
I don't see this happening. If Microsoft's statement is meant to reflect on anything then they'll mean Android Pads like the Asus Transformer line kind of pricing.

On the contrary I see this happening. Microsoft is learning from others' experiences i.e. Google's Nexus's experience!

The original source (Cnet) states that the $199 figure came from the chairman of Acer. "Acer's chairman doesn't want Microsoft to price Surface at $199, claiming significant harm to PC makers" No one ever said it was going to be $199...

No way is this thing going to be $199. This has to be a BS rumor. They would have to take a massive loss to sell at $199. $399 is the cheapest I expect for a high quality 10.6" quad core tablet with 2GB RAM a touch cover, usb, HDMI, and men card slots. $499 is probably more realistic.

I agree with you. No way at $199. But I still can't help thinking....they knew this up-front with the XBOX. They were fully prepared to take a loss for the next 3 to 5 years after XBOX started. Hell at least $199 at the beginning ( some kind of sale ) just to get it out there. Its enough negatvity around Metro and the start screen as it is.

harveyt said,
I agree with you. No way at $199. But I still can't help thinking....they knew this up-front with the XBOX. They were fully prepared to take a loss for the next 3 to 5 years after XBOX started. Hell at least $199 at the beginning ( some kind of sale ) just to get it out there. Its enough negatvity around Metro and the start screen as it is.

They weren't trying to sell Xbox OS to other hardware manufacturers though.

Subsidizing the Surface would mean that other hardware makers would have no chance to compete and would probably bail on Microsoft at this point.

Without accessories such as keyboard, possible. Of course, a majority of people will want the keyboard (pad one for $50, tactile for $70?) and other accessories. Then you have the apps from the store since no x86 programs work on the ARM-based Windows RT OS. It worked for XBOX, it will work for this. Some of us don't buy many apps, but those that do will counter our stinginess.

It's logical on Microsoft's part... they want to spur development in the Windows 8 realm, and the way they do that is FLOOD the market with tablets. There will be developers jumping over one another to get the apps out, because there are a buttload of tablets now on the market.

That said, $199... no brainer. I want one.

I seriously doubt it will be $199, I'm sorry - just can't see it happening. If the rumor was $399 on some promotion I would be more inclined to believe it with a grain of salt but $199 for a 10' tablet with keyboard running Windows 8 just doesn't seem believable...

Obry said,
I seriously doubt it will be $199, I'm sorry - just can't see it happening. If the rumor was $399 on some promotion I would be more inclined to believe it with a grain of salt but $199 for a 10' tablet with keyboard running Windows 8 just doesn't seem believable...

Not that it makes it any more believable but the keyboards are sold separate.

It looks like they are going the Xbox way by just absorbing all the cost to just get into the market, then start to pull in the profits years down the line.

Jose_49 said,

Kindle Fire anyone?

OK after the initial shock of the price I started to think for a min. Doesn't this news come at a very interesting time. The nook family of products are being discounted heavily to the point they are almost impulse items. It was originally rumored that the new nook was to be announced in sept. Microsoft now has a partnership with B&N. The nook tablet 8gb price (the most popular) was 199.99 this may be either a different RT device or the surface has more to it than we originally thought.

My guess is that the device that is being sold for 199.99 may be called Surface for Barns and Nobel. No camera, lower clock speed, e-reader app preloaded, plastic version of the original Surface. That's just my hunch.

That's about £130! If I wasn't getting Windows 8 instead of Windows RT, I wouldn't even mind paying £200 ($300) for it, so that's an excellent price!

bguy_1986 said,
Is it possible that it's $200 with a dataplan from AT&T or something????

That's possible I suppose. An unlocked iPhone is like $600 but only $199 on contract.

Thing is that tablet data plans are cheaper than full smartphone minutes+messaging+data plans. I don't think it would be profitable for the carriers.

Stetson said,

That's possible I suppose. An unlocked iPhone is like $600 but only $199 on contract.

Thing is that tablet data plans are cheaper than full smartphone minutes+messaging+data plans. I don't think it would be profitable for the carriers.

The surface doesn't have 3g/4g in it...only wifi. So no carrier is going to sell it (unless they bundle a wifi hotspot w/ it)

Stetson said,

Thing is that tablet data plans are cheaper than full smartphone minutes+messaging+data plans. I don't think it would be profitable for the carriers.

Carriers still make plenty of money. Bandwidth costs very little. True, the infrastructure is expensive, but it was being built long before tablets. Plus most people already have phone plans. The tablet data is just icing on the cake for them.

The only problem I see is the possibility of having to purchase software licenses twice; once for this, and once for your desktop/laptop. If it were x86, you may be able to get away with sharing licenses between the devices (installing office home and business on your home pc and your work laptop for instance), but a completely different platform would most likely mean separate licensing. They'd make their money back fairly quickly.

koppit said,
The only problem I see is the possibility of having to purchase software licenses twice; once for this, and once for your desktop/laptop. If it were x86, you may be able to get away with sharing licenses between the devices (installing office home and business on your home pc and your work laptop for instance), but a completely different platform would most likely mean separate licensing. They'd make their money back fairly quickly.

As far as I know, Office will come with RT. If you buy x86, it'll be as usual. I would think your apps would be linked to your Microsoft Account and not the device so as long as it's not a x86 app, you should be able to use them on both.

koppit said,
.....

You will be able to install your windows store purchases on up to 5 windows 8/rt devices for the Microsoft Account you purchased under.

Crap! Now that I think about it... If true, it will be cheaper to purchase a Surface than a copy of MS Office 2013!

Wasn't the last price "leak" ~$1000. Seems any figure will get published.

Edited by thommcg, Aug 14 2012, 4:25pm :

Honestly they can't sell it $499. It really has to be pretty low to sell these things between $200-$300 dollars. My bet is the keyboards are going to sold separately for extra $50-75 dollars.

brianshapiro said,
I want to know how much the x86 version will cost

I would say $899 at the cheapest. $999 is more likely.

WooHoo!!! said,
Absolutely no chance.

$399 at best.

they want to break into the market, just like the xbox they might just eat all of the cost and are banking on profits down the line through reduced hardware cost and software sales.

I am Reid said,

they want to break into the market, just like the xbox they might just eat all of the cost and are banking on profits down the line through reduced hardware cost and software sales.

Which would completely annihilate their relationship with hardware partners. ASUS, Samsung, etc. can't subsidize the cost of their devices, so there would be no way for them to compete with the Surface.

If that's what Microsoft wants then that would be a good way to do it, but I don't think that's their intention.

True. But if a $249 iPad mini hit the market, consumers will consume that!!!
MS will have to choice but to compete with that. Prolly why they haven't released any pricing yet.
Android will have to go down to the $79 tablet markey then.

The King of GnG said,
ARM-based "compiuter"? Uninterested

It still runs full-blown Windows. & you can always get the non-ARM Surface Pro if you really want...

MASTER260 said,

It still runs full-blown Windows. & you can always get the non-ARM Surface Pro if you really want...

It runs Windows RT (stands for Runtime), not full-blown Windows 8. You can install Metro apps only, the only applications you can run in the desktop interface are the built-in ones and Office 2013. No older apps will install.

If you want what other tablets can do (games, email, internet, apps) an ARM tablet with Windows RT will do fine.

If you want to be able to run anything you could on a desktop, you'll want a x86 based tablet with Windows 8.

MASTER260 said,

It still runs full-blown Windows. & you can always get the non-ARM Surface Pro if you really want...

No it only run winrt based apps. You can't run x86 apps on this version.

cloudstrife13 said,

It runs Windows RT (stands for Runtime), not full-blown Windows 8. You can install Metro apps only, the only applications you can run in the desktop interface are the built-in ones and Office 2013. No older apps will install.

If you want what other tablets can do (games, email, internet, apps) an ARM tablet with Windows RT will do fine.

If you want to be able to run anything you could on a desktop, you'll want a x86 based tablet with Windows 8.

Or use Remote Desktop

Only if they sell it at a loss like a console.

Google/ASUS barely managed to make a 7" basic plastic tablet for that price. (Not that the Nexus 7 isn't good, just there's no way you can sell a magnesium body 10" Surface with 32GB of memory for the same price).

I would put my money on $599 or $499. $399 even would be a big deal.

still1 said,
too good to be true

How about you hit the "Report a problem with article" button that's available under the article. It's quicker and respectful. That's what I did.

dogmai79 said,

How about you hit the "Report a problem with article" button that's available under the article. It's quicker and respectful. That's what I did.

That link is for typographical errors. Simply because the news expressed in the article doesn't fit with your own opinion doesn't mean there is a problem with the news article! It does start with "a pinch of salt"...

jamieakers said,

That link is for typographical errors. Simply because the news expressed in the article doesn't fit with your own opinion doesn't mean there is a problem with the news article! It does start with "a pinch of salt"...

Take a look at the last paragraph of the article. I'm referring to the mistake. Brad put to go to be true. I just assumed still1 was referring to that.

It does seem too good to be true though.

dogmai79 said,

Take a look at the last paragraph of the article. I'm referring to the mistake. Brad put to go to be true. I just assumed still1 was referring to that.

It does seem too good to be true though.

Fixed now.

dogmai79 said,

How about you hit the "Report a problem with article" button that's available under the article. It's quicker and respectful. That's what I did.


I was not talking about problem in the article... I was referring to the price of the surface... Price is too good to be true

As amazing as it would be, I just can't see it.

They'd lose money on every one whilst simultaneously taking a big dump on all of the hardware vendors with whom they've held relationships for decades - like Dell and so forth. I don't think companies like Dell could afford to compete.

Unless Microsoft is about to make a radical u-turn on how it produces hardware and licenses it's software going forward. Which would be interesting.

Chicane-UK said,
As amazing as it would be, I just can't see it.

They'd lose money on every one whilst simultaneously taking a big dump on all of the hardware vendors with whom they've held relationships for decades - like Dell and so forth. I don't think companies like Dell could afford to compete.

But isn't it much more fun to imagine something like this. In fact, I'll do one better: I heard from a 'reliable source' that the Intel version is going to sell for $75 because of…business contracts with Intel…in Japan.

Is that enough to get cited by Engadget?

If microsoft wants to give these things away: I'll buy half dozen and mount one in every bathroom/bedroom in my house. Even if Microsoft's store generated "apple levels of profit" they wouldn't be recouping the cost of selling them at a 50% hit (given that googles smaller tablet is 'profit free' at $250 I don't think it's crazy to say that Microsoft's larger/better one would cost more to make). but we can all have a good wank over imagining microsoft ****ing several billion dollars into the wind just to 'stick it to apple' (and everyone else).

Chicane-UK said,
As amazing as it would be, I just can't see it.

They'd lose money on every one whilst simultaneously taking a big dump on all of the hardware vendors with whom they've held relationships for decades - like Dell and so forth. I don't think companies like Dell could afford to compete.

Unless Microsoft is about to make a radical u-turn on how it produces hardware and licenses it's software going forward. Which would be interesting.


As for loosing money, they do the same thing with the Xbox. They sell it for less than it costs to make it, and then make up the money in game/app sales.

evn. said,

But isn't it much more fun to imagine something like this. In fact, I'll do one better: I heard from a 'reliable source' that the Intel version is going to sell for $75 because of…business contracts with Intel…in Japan.

Is that enough to get cited by Engadget?

If microsoft wants to give these things away: I'll buy half dozen and mount one in every bathroom/bedroom in my house. Even if Microsoft's store generated "apple levels of profit" they wouldn't be recouping the cost of selling them at a 50% hit (given that googles smaller tablet is 'profit free' at $250 I don't think it's crazy to say that Microsoft's larger/better one would cost more to make). but we can all have a good wank over imagining microsoft ****ing several billion dollars into the wind just to 'stick it to apple' (and everyone else).


If their app store generated Apple levels of profit they would most certainly recoup their losses and a whole lot more.

Planning on getting a Pro model for myself but if the RT's are $199 then it's pretty much a guaranteed sale, get one for my daughter.

Jose_49 said,
R.I.P -----> iPad.

Which means, that MS is absorbing all the costs, and is very confident on their Store. Pretty clever, but risky move IMO.

Jose_49 said,

R.I.P ----- iPad.


ONLY if this turns out to be the actual price and they allow it to be sold internationally
rather than just within the US only ... the biggest reason why the Zune player flopped.
The Zune was lined up to be the "iPod Killer" yet it was only officially available within
the United States, while the iPod continued to be available everywhere.

Hopefully Microsoft has learned from that mistake, or they'll have another huge flop.

Jose_49 said,
R.I.P -----> iPad.

I doubt that. People are VERY ecosystem-invested for at least one more generation of the iOS tablet platform. But...

Somebody, somewhere in Cupertino, is tripping over himself to see if this is true. And...

Somebody, somewhere, is already looking into whether there are legal reasons to prevent Microsoft from selling at that price point.

DJGM said,

ONLY if this turns out to be the actual price and they allow it to be sold internationally
rather than just within the US only ... the biggest reason why the Zune player flopped.
The Zune was lined up to be the "iPod Killer" yet it was only officially available within
the United States, while the iPod continued to be available everywhere.

Hopefully Microsoft has learned from that mistake, or they'll have another huge flop.

the difference being... Zune could have killed the iPod if people paid attention to it. Surface is not lacking for attention.

but hey, what do I know? i'm not an analyst, I just play one on TV.

Joshie said,

I doubt that. People are VERY ecosystem-invested for at least one more generation of the iOS tablet platform. But...

Somebody, somewhere in Cupertino, is tripping over himself to see if this is true. And...

Somebody, somewhere, is already looking into whether there are legal reasons to prevent Microsoft from selling at that price point.


Frankly, I wonder how true this is outside of just being used to an ecosystem. I know plenty of people who buy music but much fewer that buy video. That anchor keeping people on ios isn't as big as those who live in that bubble seem to believe.

It will be interesting to tell, but needless to say the tablet market is fresh and ripe for the picking, saving $300 and grabbing a SurfaceRT device is going to look incredibly nice.

DJGM said,

ONLY if this turns out to be the actual price and they allow it to be sold internationally
rather than just within the US only ... the biggest reason why the Zune player flopped.
The Zune was lined up to be the "iPod Killer" yet it was only officially available within
the United States, while the iPod continued to be available everywhere.

Hopefully Microsoft has learned from that mistake, or they'll have another huge flop.


The Zune didn't "kill" the iPod in the United States either… Far from it.

Jose_49 said,

Which means, that MS is absorbing all the costs, and is very confident on their Store. Pretty clever, but risky move IMO.

Not really, because that's how they did it with the XBOX too. First absorb the cost, so that you will own the market. Then get your money back by another way, like Game Dev Licensing (in this this, the Windows 8 App Store).

tomcoleman said,
INSANE

Yes, quite unexpected. Maybe Microsoft decided on $200 after lots of big companies gave Microsoft flak on their WinRT tablet? Thus because of no big WinRT partners Microsoft decided to play for market penetration with the Surface instead of it providing a "reference Windows 8 (WinRT) experience" device ?

tomcoleman said,
INSANE

It did not surprise me. I knew there is a huge difference in pricing between the Surface RT and Pro. and the reason is simple. they want to promote the platform. Jump start. They did exactly the same thing for XBOX 360 and over time boost the price and now they are no.1 putting play station in such misery