> If Microsoft is actually releasing their own tablet hardware as a long term strategy for extending an existing franchise (such as Xbox), it's probably because their is little interest in Windows Tablets from existing hardware manufacturers.
Current Windows tablet makers may infer that investing money on Windows 8 tablets is as likely to pay off as the last round. The story there is similar to the iPod natural monopoly -- no one made any money on any of those cheaper-but-not-cheap-enough hard-drive-based portable music players. What is needed is an optimal hardware+software combo, plus a different business model. Following Amazon's lead, it might make sense to sell a Win8 tablet at cost and make the profit on cloud-based subscription services.