In an interview with the New York Times, Nvidia boss Jen-Hsun Huang hinted at dirt cheap Tegra 3 tablets and chromebooks, but he also had some unkind words for Android in general.

Huang claims Android “hasn’t developed” as he had hoped and it is still nowhere near a proper OS that could replace PCs when it comes to serious applications.

“For many people, though, work is still the primary reason to have a computer. They want Windows to work well, they want Outlook to work well. A tablet running Windows 8 with Tegra could be very nice,” he said.

Nvidia sees Android tablets of the future moving to more affordable price points, i.e. $199. Huang does not mention form-factors, but he is probably talking about compact 7-inchers.

“We took out $150 in build materials, things like expensive memory,” he said. “At $199, you can just about buy a tablet at a 7-Eleven.”

We will see exactly where Nvidia pinched pennies when the first cheap Tegra 3 tablets start rolling out, or when Google rolls out its 7-inch tablet. For now, $199 seems like a very good price point, provided build quality stays at reasonable levels.

More here.