Microsoft Cuts Surface RT Price to $349

Microsoft has reduced the price of its Surface RT tablet by $150. Originally priced at $499, the 32GB Surface RT now costs $349, while the price of the 64GB model is reduced from $649 to $499.

The price cut signals that Microsoft is probably sitting on a large amount of inventory of the device, which the company wants to sell before the next generation of Surface products arrive, likely this fall with the release of Windows 8.1.

Microsoft reportedly ordered 3 million units for the original launch of the device last fall, but has sold only about 1.5 million, according to a report from Bloomberg. The device received tepid reviews when it debuted, although Microsoft has pushed out many updates since then, and Windows CMO Tami Reller told Mashable in May that the software upgrades have made the Surface RT a "different product" than the tablet that was released in October.