Microsoft Cuts Surface Tablet Prices

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July 15 (Bloomberg) -- Microsoft is cutting the price of its Surface RT tablet by as much as 30 percent as the device struggles to lure customers amid competition from machines such as Apple’s iPad. Bloomberg's Tom Giles reports on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Joins me now with a look at this.

First question, what took so long?

Based on numbers they did not like.

Circus, as we have been reporting, has not met expectations.

Microsoft's partners are not players without the circus has done.

This was a really important thing to get right.

Based on what we're seeing the pc market is really declining.

When it comes to tablets, when the consumer goes to the store, when the business goes to make a purchase, they are opting for alternatives like the ipad, like those made by samsung that feature google.

Microsoft really needs to turn things around in quickly.

Massive reorganization.

Trying to understand what he is really getting at.

In terms of this particular division, who is leading this division?

Will this person be able to help make major changes?

Julie larsen grain will be in charge of hardware.

That will include circus come x box -- surface and xobox.

A good way to look about this -- look at this is the microsoft challenge.

It has a lot of expertise but needs to get developers on board to create that applications.

Users are spoiled by the fact that you have hundreds of thousands of applications available from apple and google did not have the same falling on microsoft.

Again on the software side.

Harborside you need someone to come in and focus on the design.

Make them sleep, interesting, sought after and sexy the way apple has with the hardware.

-- make them sleek.

How does this fit into the bigger picture?

The bigger picture is a lot of different divisions.

Xobxbox doing well.

Cranking out products the market really wants.

On the other hand, the smart phones, pc side of things, surface not doing as well come even some of the partners not to -- also expressing dismay at how things are going.

That makes google look were interesting as a software partner.

This text has been automatically generated. It may not be 100% accurate.

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