Although the Motorola Xoom launched with the bragging rights of being the first ever Honeycomb tablet, it never really tasted the kind of successes that Motorola (or Google) may have been hoping for. Not only was it considerably overshadowed by the iPad, it also got forgotten when newer and more exciting Honeycomb tablets started appearing.
One of the reasons for its lackluster sales could be attributed to its high price. So to address this Motorola has finally slashed the price of the base model by $100, bringing it down to $499. This, coupled with the fact that it has 32GB on-board storage, unlike 16GB on most of its similarly priced rivals, makes it bit better value. The other two models are still bit pricey, particularly the last one costing $799 without a data plan.
It remains to be seen whether it brings any change in the sales of the Xoom. While it does bring the Xoom in the same ballpark as the other tablets, at least as far as the price is concerned, I believe a slightly more aggressive price-drop would have gotten it much more attention.