swa66 - 12:11 pm on Jun 4, 2013 (gmt 0)
Reducing prices is the poor man's choice.
One simply ought not to launch products that cannot hold their own at your intended pricepoint.
Reducing prices to even get a sale momentum going is simply silly.
But they're used to high price points on the OS, and that's something their competitors do not have at all (one doesn't pay directly for iOS nor android). And they're already messing big time with their PC hardware partners by selling the slate hardware themselves.
Making profit on the hardware and giving the software away for "free". isn;t an option to Microsoft in the long run as their PC partners will rebel against them.
In the end I think what made Microsoft big in the PC era, is what will make them negligible in the tablet era: their agreements with the many hardware makers out there.
Clearly making an tablet OS that's going to cost 100USD isn't an option. Nor is making tablets in low volume an option.