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$400 million is indeed a lot of revenue but that probably wouldnt cover its R&D and marketing costs. I havnt seen let alone touched one but ive heard its a fantastic device. The system seems to be caught up in the Windows 8 backlash and some are using it as a prime example of microsofts OS failings.

Whatever the case I think microsoft are partly responsible in the way they marketed the device. The adverts in the uk make it seem like a new laptop akin to the Chrome when in fact its a whole lot more. But if it fails I dont think it will affect microsoft to much. Their big enough to survive even if the generic uptake of Windows 8 is low as well; its all lessons learned for the next OS.