[podperson]

I don't think subsidizing the surface to get volume would be a winning move either.

Selling heavily discounted surface tablets today would alienate and possibly kill their OEMs and set forward price expectations that would preclude future profitability.

Microsoft needs to establish a position for themselves that is profitable, otherwise they're burning their bridges behind them AND in front of them. It's hard to see whether Surface is going to succeed -- the reviews thus far are at best equivocal.