There are rumors that the RT version will sell for $199. If that’s true, it can be huge. I don’t think MS has any other option than to subsidize the device in order to gain market share. It definitely will have a wide ranging appeal, especially at that price point. To share a little anecdote; I have a completely non-tech friend who put off his tablet/laptop purchase based on what he heard about Surface so far. To him, it sums up as “a tablet that can run all my apps”. I am sure he is not the only one. (though that doesn’t apply to RT version).