Velocity Micro has slashed the price for their upcoming 8-inch Android tablet, according to details obtained by TechCrunch.  The T408, first announced in early September, was unveiled with a $240 price tag and included respectable hardware.  Unfortunately, Amazon pulled the curtain back on their Kindle Fire a few weeks later and listed their “tablet” with a $199 sticker.  Not to be outdone, Velocity Micro has plans to shave the price down to the new magic price point and should be announcing something formally in the coming days.

Given the specifications, Amazon Appstore, and Android 2.3 build this is perhaps the right price for an 8-inch tablet.  Anything in the $200+ range is going to need the weight of a major manufacturer, full Android Market, or a Honeycomb build to help gain traction.