In July, Microsoft filed its annual Form 10-K with the Securities and Exchange Commission (SEC) revealing that its Surface lineup of tablets had garnered only $853 million in revenue for the company, which is less than the $900 million writedown the company took for the Surface RT. While Microsoft did not reveal how many Surface units it sold, GeekWire estimated that it sold approximately 1.7 million units by the end of June.
Last month, Microsoft CEO Steve Ballmer told employees at an internal Microsoft town hall meeting that the company had "built more devices than [Microsoft] could sell" in reference to slowing Surface sales. The company has been heavily marketing Windows 8 tablets recently, pitting different tablets against Apple's iPad in a series of ads that highlight the iPad's inability to multitask and its lack of built-in productivity software.
Despite the price cuts, Microsoft has suggested that new versions of both the Surface Pro and Surface RT are in the works, along with a number of new accessories.