Microsoft Surface Priced at $499, Report Claims

After months of speculation, Microsoft

has reportedly announced that it will charge $499 for the 32GB base model of its long-awaited tablet.

According to

, Microsoft will also sell a device and keyboard combo for $599. For an additional $100, consumers can obtain a 64GB model with the keyboard cover as well. This price is significantly higher than the

of $199, which analysts thought would be possible through subsidies. (Microsoft could have sold Surface at a reduced rate in exchange for Office 365 subscriptions.) But unlike Amazon's

seven-inch Kindle Fire and Google's

Nexus 7, Surface is a full-sized tablet that comes equipped with a high-end operating system, Windows RT. It will run real Microsoft programs, including Office, and allow users to perform many more tasks than the average tablet. A Microsoft representative was not immediately available for comment. Now that the price has been announced, Microsoft's primary objective is to build buzz for the highly anticipated device. Outside of the tech community, few consumers are entirely aware of all the tablets that are shipping this holiday season. Microsoft plans to change that -- and steer consumers toward Surface -- with a

for Windows 8. Five million seems to be the golden number among tablet manufacturers. In addition to Google and Amazon, which are expected to build five million tablets each this holiday season, Microsoft is expected to unleash a large number of Surface tablets in the fourth quarter. Citing component suppliers in Asia,

reported that the Windows maker will produce three to five million tablets before the year's end. Apple

, which is expected to

this month, is expected to ship

before the end of the year. Other reports indicate that Apple may ship

, placing it squarely within the five million range of its competitors.