The Amazon Kindle and Google Nexus 7 will have some major competition starting on October 26. That’s the day when Microsoft will release the Microsoft Surface tablet at a rumored cost of just $199.99.

A few weeks ago one retailer in Sweden posted prices for the Surface tablets that reached nearly $2000, a price tag Microsoft was quick to deny and then have removed from the Swedish company’s website.

While Microsoft has not confirmed pricing at least one source close to the tablet’s sales system claims it will be just $199.99 for a base model with higher pricing available for higher end Surface devices. Even if the $199 price tag is for the Windows RT 32GB system it’s still a steal compared to low end iPad devices which start at $499.99 for new models.

The news of the low-ceiling pricing reportedly comes out of a TechReady15 conference last week, during the closed-door session Microsoft officials revealed the consumer friendly pricing.

Microsoft has long maintained that the Windows RT Surface would be priced competitively with other tablets.

With Microsoft promising a smooth experience between Windows Surface devices and its upcoming Windows 8 system which will arrive on the same day Microsoft could be using the low $199 price tag as a means to attract new tablet users who would normally gravitate to Apple or Android OS’ while at the same time convincing them to pay for the new Windows 8 OS.

There is also the possibility that Microsoft will sell the new system as a loss leader with the hopes of recuperating its expenses through the sale of Windows apps, the same method for profitability used by Amazon for its Amazon Kindle Fire tablet which also sells for $199 but does not include a bluetooth keyboard.

Microsoft Surface To Cost $199 [Rumor] is a post from: The Inquisitr