I kinda agree with Mitch, if MS would have priced their RT a little more aggressively and wouldn't have been so greedy with their pricing, then I'm CERTAIN they wouldn't have lost $900M with lost revenues, fact is I (and others) thought the price of MS's devices and KB was ridiculously high and that's why they are sitting with $900M worth of inventory! do you really think it was a coincidence that once they lowered the prices of the RT they started getting popular? REALLY?! same with piracy problems that were plaguing MS is because their prices of their OS was too much!
It's not that the price was too high "all stop"--overly simplistic way to look at it--it's that MS never tried to sell the Surface RT as being significantly more functional than iOS/Android devices (multitasking, system tools, file managing, ports, etc.), and then most reviews never stressed the value added with the Office suite while calling out only the "app" deficiency. MS could have removed Office and lowered the price accordingly. That's about $100-plus off the retail price right there. Would that be a good idea? Fuck no. The fact that new users who got the RT after the price cut are by and large surprised by its utility (judging by new user reviews) says more about information disconnect than it does about a price disconnect... because the early adopters who DID get their hands on the Surfaces and understood what they actually were, were not concerned by the price.