Most of the Windows powered smartphones and tablets that were released last year cost north of $300 at the very least. This presents a problem for the company that’s trying to make its mark in the competitive mobile market. Microsoft is setting on a new course this year. Its vice president of OEM partners, Nick Parker, has confirmed that customers can expect Windows mobile devices to cost under $200 starting this year.

Parker told the Wall Street Journal that the Microsoft is aiming for price points that are “very industry competitive” for 7, 8 and 10-inch devices. “They will really surprise you,” he says, adding that this year Microsoft expects to have devices in 1, 2 and 300 dollar range. He also revealed that certain Windows Phone smartphones will also be sold for under $200 in some markets.

This is likely going to work out in the company’s favor. Majority of the emerging markets are catered to by low cost Android devices right now. Microsoft will truly be able to compete against the onslaught with competitively priced Windows Phone powered smartphones.

This change in pricing strategy comes following Microsoft’s decision to make Windows free for devices that have displays smaller than 9-inches. OEMs thus have an added incentive to make devices which would ultimately help the company increase its share in the mobile market, which is without a doubt the ultimate goal.

Filed in Cellphones >Tablets. Read more about Microsoft and Windows.

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