Why does the Nexus Q cost $100 more than the Nexus 7?

I am I missing something here?

Can anyone explain to me why a 16GB Nexus 7 costs $199 and a 16GB Nexus Q cost $299?

Below are the specs for both devices. Someone tell me where the extra $100 were sent on the Q's hardware.

Nexus 7:

CPU: quad-core Tegra 3 processor with 12-core GPU

Memory: 16GB with 1GB of RAM

OS: Android 4.1 (Jelly Bean)

Connectivity: Wi-Fi, Bluetooth and NFC

Battery: 4325 mAh

Display: 7” 1280x800 HD, IPS display (216 ppi)

Camera: 1.2 megapixe

Ports: microUSB

Nexus Q:

CPU: dual ARM Cortex-A9 CPUs and SGX540 GPU

Memory: 1GB LPDDR RAM, 16GB NAND flash memory

OS: Android 4.0 (Ice Cream Sandwich)

Connectivity: Wi-Fi 802.11a/b/g/n, Bluetooth, NFC

Ports: Micro HDMI, Micro USB, 10/100BASE-T Ethernet, TOSLink Optical audio

I guess Google are just paying their American factory workers more than Asus are pay their Korean counterparts. But that's seems like such a high premium for a device when compared to a Google TV set top box that cost the same with much more functionality and no requirement of an Andriod device to control it.

Nexus Q seems like a joke gone too far and at $299 it's already dead in the water.