So the problem with the Kindle Fire — and the Nexus 7 — is the same problem that’s plagued the PC industry. Deep and extreme price cuts give the makers no wriggle room to innovate. There’s no doubt that a $199 was an attractive price point for a tablet, but it’s possibly that it was unsustainably low, and that by driving prices down to this level so rapidly, both Amazon and Google have irrevocably harmed the tablet market by creating unrealistic price expectations. It’s quite likely that these impracticable price demands could harm Microsoft and its tablet ambitions.

via How the Kindle Fire and the Nexus 7 harmed the tablet market | ZDNet.