Steve Kovach, Business Insider
We first spotted the price drop on The Verge.
The news comes a few weeks after Microsoft cut the price of its cheaper Surface RT tablet, which competes with the iPad, from $500 to $350.
But that wasn't the end of Microsoft's recent Surface woes.
The company was forced to take a $900 million writedown on the Surface RT due to unsold inventory. Later, it was revealed that Microsoft's entire Surface business only generated $853 million in revenue for the company. Compare that to the $25 billion in revenue Apple brought in from its iPad business during the same period.
This could also be a sign that Microsoft is gearing up to launch a new generation of Surface tablets that run on Intel's new "Haswell" processors. Those processors are very powerful and allow incredible battery life.