Because costing less doesn't trump backwards compatibility for Windows users. If you are getting an ARM CPU, you have three choices. High end iOS with lots of wall gardened apps. Middle and low end Android with fewer but plenty of apps. Or RT which had the high price tag of iOS and much fewer apps than either. RT can't run old Windows x86. Add to that MS choice to price RT really high. Hence $900M writeoff and current discounts. If Surface 2 is priced with iPad, someone at MS needs a dose of reality.
The sad fact is no one wants RT when they can get iOS or Android. If they want x86 compatibility, they'll get Surface Pro. They'll pay more for that advantage.
Sure you can look at it that way but MS ultimately are abount pleasing their share holders, so they are ultimately about maximizing the amount of money they can make. If they can emulate Apple by even 30% success as Apple have done over the last 4 years thats going to be as much as 30 billion dollars in net profit they could have in the bank. Its all about trying and trying again.
Sure you can say they are too late to do that but MS would argue they owe it to their share holders to try, RT doesn't cost them that much at the end of the day and on a long enough time line even going at it is it will probably become profitable for them. This leaves the door open in the murky future for any possible big hit device.
Apple made a lot of money by "popping" up a new software/os platform despite the mass consumers addition to MS Windows. Microsofts style is to just keep plugging away at it until they get their software right. MS would much rather keep plugging away at it and and the end of the long road have success with a cheap ARM SoC backend that costs $10 then an Intel chip that Intel would like to sell for $200.
This puts Windows RT front an center still for the future. I can't believe how many tech articles are written under the belief that Windows RT was anything other then a long term plan for the future. MS lost big time to Apple because they didn't have an ARM compatible OS ready to go on the best big wave, they wont make that mistake again even if they have to wait another decade to see what the next big wave is.
Why is that? One advantage of RT were that it had a longer battery life using ARM compared to x86. Now Haswell won't match ARM in terms of efficiency but it will bring up the battery life to a usable number of hours for the average person. First gen Surface Pro had 5 hours of battery which is not enough for full day of work. If it brings it to 8 or more, then what advantages of using RT will there be?
LOL, You stript out the the reason your self that RT is important. Because you can ship a complete computing device with a $10 SoC/CPU instead of something Intel will want normally x 10 more amount of money.
Everyone likes to think their not cheap but all to often they are, x86 = expensive device. RT = cheap priced device that will eventually do everything you want.
There are competing ARM SoC makers pushing now multi Ghz chips at around $10, Apple have their 64bit ARM chip now, and it will only get faster. The days are gone where every geek should worship Intel CPUs as some kind of unreproducible holy grail, its just not the case any more and any advantage is slipping fast.
Apple has made so many billions because it was able to cut margins that Intel would normally want to take.
You can't stop that hungry beast that makes companies want more for them selves.
And on the seventh day, He exited from append mode.