Microsoft Announces Major Price Cut for Windows 8 Devices

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Microsoft (MSFT) has announced a price cut on Windows 8 devices — with expectations of prices falling below $200.

Microsoft MSFT stockSmartphones and tablets are included in the price reduction.

“We’ll reach price points that are very industry competitive for 7, 8, 10-inch devices,” said the company’s vice president of OEM partners Nick ParkerParker, at Computex on Wednesday. “They will really surprise you. Last year, we were in the 3s, 4s, 500 dollars. This year, we’ll be 1s, 2s, 3s.”

With the market dominated by Google (GOOG), Microsoft has pushed hard to establish itself as a stronger player in the field — with its cost reduction a big part of its plan.

Via the Wall Street Journal:

The fast fall in prices for Windows 8 devices is the result of Microsoft’s aggressive efforts this year to gain market share in the mobile sector. The market is dominated by Google, which offers its Android operating system for free to handset and tablet developers.

The company this year made Windows free for smaller devices (under 9 inches).

The move was part of a larger plan to match those running on Android.

MSFT stock is up 8% year to date.

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