Re: Original XBox Anyone?
As I've mentioned elsewhere, the possible original price for Surface was probably higher but the Nexus 7 could well have made them knock it lower, much lower.
The Nexus has been a very large brick thrown in the pond.
It has to sell for a good margin below the iPad or...you'd just buy an iPad (well I wouldn't but Joe User would).
If they sell at $199 then it will sell like crazy and create a viable ecosystem that will garner them revenue from apps sales. This OS isn't a one shot deal for MS, there is revenue from the life of the device this time.
Personally I would think $299 is a more realistic price. If it's $400+ then it's dead in the water and guaranteed a place in every "Failed Tech" article for years to come.