[mrdodge]

> In terms of profit - I think MS will price the hardware as low as they can, to fight off Apple. Their profit will come elsewhere

From where? They do not have a successful media store and they are bundling Office. Aside from Windows and Office, the only things they sell at profit are from 'Server and Tools'.

Internet and Devices/entertainment have been money-sinks. The idea they will start turning Apple/Google-sized profits is wishful thinking

[dharma1]

only the ARM version of the tablet will come with a free (Metro) Office, with the x86 version you have to buy Office.

Microsoft has multiple revenue streams- http://www.microsoft.com/en-us/news/press/2012/apr12/04-19fy...

They are going after tablet market share - especially for business use - with this reference design, and will try to keep the price down.

[madoublet]

Microsoft has a surprisingly cohesive ecosystem: xbox gold, xbox music, skydrive, app marketplace. So, I think this is a viable strategy.