Microsoft Surface Price Pegged at $199

The Windows RT Microsoft Surface could come in at the same price of the Nexus 7 when it comes to market on October 26.

According to Engadget Microsoft plans to release the Surface with a $199 price tag. The price comes from a source who attended Microsoft’s¬†TechReady15 conference where the company discussed the launch plans for the tablet.

The possible price could explain why companies like Acer are asking Microsoft to think twice about the tablet. A $199 Surface with Windows RT would undercut tablets from almost every other manufacturer. It would place the base model at the same price as the Nexus 7 and Amazon Kindle Fire.

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If Microsoft does release the Surface at $199, it will undercut the iPad by $300, and occupy the price range normally reserved for 7-inch tablets. The price could mean more sales than if Microsoft priced it competitively with the iPad, which would mean more users have access to Windows RT.

Such a low price point would be a huge win for Microsoft and consumers, assuming consumers actually want to buy the Surface. The Surface will run every Metro app in the Windows Store, as well as a stripped-down version of Microsoft Office which Microsoft bundles with every Windows RT tablet. We know there are some users than want Office on a tablet, and to have the suite running on a 10-inch tablet for $199 seems like a great deal.

Microsoft may change its mind on the pricing, but we hope it doesn’t. A Surface that costs as much as an iPad, even an iPad 2, will run into trouble even with Office. A lower price puts it at almost impulse-buy level for some users, and makes the decision to buy one much easier.