Pricing the Surface RT in the Wake of the Nexus 7

I was wondering how the Surface RT should be priced in wake of Nexus 7.

I'm sure we would all like the surface to be priced as low as possible, but it may not be possible for the Surface RT to match the price of the Nexus 7 for a couple of reasons:

  1. Surface RT will have 32GB and 64GB SSD, while the Nexus 7 has 8GB and 16GB SSD. That's a big difference.
  2. Surface RT will have a 10.1" screen while the Nexus 7 will have a 7" screen. Both the Surface RT and the Nexus 7 seem to have an HD display (only the Surface Pro has a full HD display).
  3. Surface RT will have an attached keyboard/cover and Office.

The Nexus 7" will be priced at $199 (8GB) and $249 (16GB). Given that Amazon was actually losing money on each tablet, I bet this price has little to no margin for Google/Asus. And given the differences outlined between the Surface RT and the Nexus 7, I doubt the Surface RT will be able to come down to this price level esp since all of the above will cost more.

Also note that the new iPad is priced at $499 (16GB), $599 (32GB), $699 (64GB).

How do you think the Surface RT (32GB) and (64GB) would be priced given the features above and the pricing of competing tablets?