At that price, would surely be selling below its costs, analysts said. However, Microsoft could take the loss in hopes of making up revenues on apps and media sales for the device.

Also, Microsoft would be trying to make an impact against the and sold at the same $199 price, since Microsoft arrived arrived late to the game.

Engadget said it learned the price from an inside source at Microsoft's recent TechReady15 conference, where launch details for Surface were announced.

Microsoft said the Surface tablet would be priced in-line with Windows RT tablets from other makers such as Asus, which hasn't announced a price. However, given the components in the Surface and other Windows RT tablets, analysts have suggested it could cost more than $600.

Microsoft said Tuesday it had no comment on pricing.