The following video is from this week's installment of The Motley Fool's Weekly Tech Review, in which Alison Southwick sits down with analysts Eric Bleeker and Lyons George to look at the biggest stories driving the tech sector this week.
In the segment below, Eric and Lyons look at Microsoft's (NASDAQ: MSFT ) recent price cut, which moved the starting Surface price from $499 to $349. Microsoft initially priced the Surface in a way that its hardware partners could make competing Windows 8 tablet designs based on Windows RT and still make a profit on them.
However, at $349, the company now risks pricing the tablet low enough that hardware partners such as Asus and Hewlett-Packard have little incentive developing Windows RT tablets when a space like ultrabooks, where PCs are selling at much higher prices, affords more profit potential. Is Microsoft's price cut a last gasp to save Windows RT by taking a more aggressive stance in pushing volume shipments of the Surface?
To see Eric and Lyons' full thoughts, watch the video.
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