Velocity Micro’s Cruz T408 tablet was already reasonably cheap when the company priced it at $240 last month. But now that Velocity Micro has shaved another $40 off the price tag, it’s an even better deal.
The Cruz T408 tablet now joins the growing list of Android tablets available for $199.99 or less, including the upcoming Amazon Kindle Fire, the Lenovo IdeaPad A1, and the ViewSonic ViewPad 7e.
Velocity Micro’s latest budget tablet features an 8 inch, 800 x 600 pixel capacitive touchscreen display, a 1 GHz ARM Cortex-A8 processor, and the Google Android 2.3 Gingerbread operating system. It features 512MB of memory, 4GB of storage, a microSD card slot, and 802.11b/g/n WiFI.
While the tablet doesn’t ship with the Android Market, it does come with Amazon’s Appstore for Android, as well as the Amazon Kindle App and a few other preloaded apps. It also has  front-facing camera for video chat.
The company’s larger Cruz T410 tablet with a 10 inch, 1024 x 600 pixel display is still selling for $299.99. But since most of the specifications on the two tablets are the same, you’re essentially paying an extra $100 for a little more screen real estate. Hopefully Velocity Micro will drop the price of the larger tablet soon as well.