But Microsoft are not giving up. For educational users, the price has now been slashed to £199 in the UK and $199 in the USA. In addition, Microsoft have given away 10,000 units to US schools. The aim of this is to help kick-start the market; at $199 it is less than half the price of an iPad. The UK price of £199 is perhaps less compelling, but still generating interest in some educational circles.
Question is: what happens next? Does this indicate that Microsoft are pulling out and simply clearing stock? Or maybe getting rid of stock prior to the launch of a new model (perhaps one that can more easily connect to networks)? Will the price for regular consumers - the sort of people who shop in John Lewis and PC World (the few retailers that sell it) - also fall to £199 in a couple of months? At £199 or less it starts to become an impulse purchase, appealing paradoxically to those who don't understand its limitations as well as those who do but can live with them. It will be interesting to see what happens next!