Microsoft Surface to cost just $199: Report

According to a report in technology blog Engadget, an anonymous tipster has informed them that Microsoft Surface for Windows RT is going to be available starting October 26 and will be priced just below $200. This new pricing information comes as a big surprise to everyone as earlier rumours have suggested a higher pricing.

Surface at $199 will certainly give the tablet and all new Windows 8 a much needed boost and help it get the ball rolling. This pricing is also important because Apple is expected to launch a cheaper and smaller version of iPad and despite wowing consumers at the time of Surface announcement, Microsoft will not want to compete with Apple using a product that is higher priced than iPad Mini or even iPad.

There are certain downsides too to this pricing, as it is further likely to anger OEMs as after the licensing and hardware costs, they won't be able to compete with Surface itself at $199, let along other tablets in the market. Acer has already pleaded with the company to drop the plans to launch Surface, but Microsoft is yet to announce otherwise.

Now, the question is, will the tablet be able to drive enough sales of application or other content that it will help the Redmond based company to make any profit or is it just a big gamble to show Windows 8 as a successful tablet platform.