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Microsoft Surface with Windows RT to sell for $199, report says

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The light version of the Microsoft Surface will sell for $199, a new report says.

At that price, the 10.6-inch tablet could seriously threaten the sales of the Apple iPad and the new Google Nexus 7.

The Surface, announced this summer, received a positive response from media and consumers, but the biggest question Microsoft left unanswered was how much it would charge for the tablet.

PHOTOS: The Microsoft Surface

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But now a report by Engadget says the lightest version of the Windows 8 tablet will be available for the same price as the Nexus 7 and the Kindle Fire despite having more than twice as much storage as the higher-end Nexus 7 and a larger screen than the iPad.

The Microsoft Surface will be available in four versions upon its launch in October alongside the release of Windows 8. The Surface will come in 32 GB and 64 GB versions running Windows RT, a slimmed down version of Windows 8 designed for tablets. The Surface will also be available in 64 GB and 128 GB versions running Windows 8.

The 32 GB Windows RT Surface would presumably be the one that costs $199.

Microsoft shared its Surface launch plans at a recent conference, an inside source told Engadget.

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At $199, the tech site speculated Microsoft would likely lose money on each unit and would be counting on consumers to spend on media and apps to make up the cost.

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