It was confirmed by multiple device manufacturers at Computex 2012 Taiwan that Windows RT license will cost about $85. At this price point, Windows RT tablets will not be able to compete with Android 4.0 tablets in terms of market price, because the cheapest Windows RT will likely cost $600. Compare this to $200 for the upcoming Nexus Tablet and other Nvidia Kai tablets or the basic model of iPad 2 at only $399. This could be a crazy strategy, but Microsoft doesn’t seem to want to compete directly with Android and iOS.
However, Microsoft may argue that users can get a full PC experience with Windows RT, instead of the “dumb” iOS or Android experience. There is still a benefit for pricing Windows RT licenses so highly. Low-end devices often generate little profit for OEMs and vendors; so things might not end well if Microsoft insists on fighting at sub-$400 range with Android, while Apple can run away with prestigious, fashionable and profitable high-end tablet market.