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disolitude said:

Some people here really don't understand what this device does and who it's for.

This device isn't meant for finger painting and slinging birds around. It's a durable, light, portable, intel i5 tablet that has an active digitizer. It's a content creation device.

They can give 2 hours of battery and charge 2000 dollars for it and people will still buy this. What this does, the iPad or any Android tablet can't do.

If you want a tablet allowing you to pinch to zoom in a browser for 10 hours a day and play tablet games, go buy an iPad, Android or Windows RT device.

In my opinion, if Microsoft was producing the Surface as competition for the netbook and low-end tablet market they could (probably) carve out a niche for themselves. It doesn't compare well against high end tablets or ultrabooks, and pricing it in/above those markets only ensures that it will be remarkably unpopular.

To put numbers on this, at $200 Microsoft would have a successful product with the Surface, at $400 they could carve out a small niche, at $600 they will have a moderate profile "flop" like the Zune, at $800 they're heading for a high profile flop, and at $1000 I see it being discontinued within 6 months. They have (realistically) over-shot their market by $600 to $800 per unit.