A lot of companies are finding that it’s hard to compete with the iPad on features like retina display and raw speed. So there’s been a shift to competing with it on price. We’ve already seen the Kindle Fire clock in at $200, a full $300 less than the iPad base model. Now comes word that Google is looking to undercut things even further by planning a $150 tablet.

The blog Android And Me says:

The ASUS MeMo 370T that was revealed at CES has been scrapped after Google contracted with ASUS to produce their “Nexus tablet.” Earlier reports said the device would retail for $249-199, but we are now told the target price is $149-199. The quad-core Tegra 3 version that was previously leaked is no more. Other than the 7-inch display, no additional information has been provided on the specs.

The Kindle Fire and, to an extent, the iPad are entertainment devices so a Google entry would mean buying into the Android platform as an entertainment resource. While Android has a ton of apps, one might be dubious to think that customers would be as comfortable using it as they would the iTunes or Amazon ecosystems.