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Slimebeast said:

Was that an educated guess by a professional analyst or a wild guess by a random blogger?

If it's $600 it's dead. At least dead for the common user market.

Im not 100% sure of the pad prices from other makers but it's something like this, right?

iPad  $600
Android (Samsung, Asus, Sony etc) $400

Depending on configurations of course but roughly. (dunno if those prices I listed allows for 3G and 4G though. But all pads have internet, don't they?)

The 16GB WiFi iPad 3 is $499. I don't know if it was an inventory clearing sale or if iPad 2 production has ceased, but Apple was selling the iPad 2 16GB WiFi for $399, still at a profit.

So it's a fair guess to assume MS will take their 16GB Surface RT WiFi tablet and sell it at the same $499.

Sure, they could go lower at $399, but the question is whether they're trying to generate profit or simply steal marketshare which could backfire if they continually have to sell their tablets at lower margins than the competition (Apple).

Worse, if they don't steal significant marketshare from both Android and iOS if users don't unanimously update their PCs to Windows 8 and now MS is saddled with a marginally selling product line generating marginal profits per unit, completely ignoring whatever R&D and marketing costs went into the product line. 

It'll be interesting to see how the consumer reacts anyway.