http://androidandme.com/2012/03/opin...as-low-as-149/
According to the article, the rumor of a low cost Google/Asus tablet is real but no quad-core CPU. It also appears that Google will copy Amazon and sell it for little or no profit on the hardware and hope to make money via its eco-system.
Could be a really smart move in the long run, creating more public awareness of Android and its viability as a true Ipad alternative. At 7 inches, it would make a pretty good e-reader alternative as well, albeit with an LCD screen.