Microsoft Surface Rumours
There has been a lot of discussion in the blogosphere around the price point for Microsoft’s upcoming tablet, Surface, which was unintentionally(?) leaked last week from an event at $199.
Even for just the cost of parts, which have been estimated at least $226, which excludes marketing, license costs, support etc, Microsoft would be selling at a hefty loss.
However, the alternative explanation to this low price is moving to a subscription based model, similar to a mobile phone contract, where buying the Surface would also include an Office 365 subscription, getting Microsoft’s new cloud products into consumers and businesses hands.
Although there are precedents for a shift to a subscription model from Microsoft, with a similar scheme with Xbox Live Gold and the Zune Pass, it is still unclear whether Microsoft would be willing to take somewhat of a gamble selling their newest piece of hardware at a loss. All eyes will be on Microsoft for the launch of Surface on October 26th, the same day as the release of Windows 8.
Recent statements from Steve Ballmer indicate that the price of the Surface will be between $300-$800. At least that’s all clear then!