There are mad rumours around the net that Asus has been in talks with Google themselves to lay down an Asus 7 inch tablet. Rumours are that the tablet may come out in May for as low as $200-$250.

This makes this potential tablet a Kindle killer or a hot competitor with the offerings from Barnes & Noble, Amazon and Blackberry (who’s 7 inch Blackberry Playbook has come down to $199).

Quality tablets for cheap are hard to come buy, as the old adage goes, you get what you pay for. The HP Touchpad sold for as low as $100 during it’s fire sale last year, and the Blackberry playbook which ha sjust released it’s OS 2.0 has gone as low as $100 for RIM employees.

Nexus devices seem to hit the market with a lot of success and support. The guys over at XDA have already developed some solid roms for phones such as the Nexus S.

There is no doubt that a tablet from Asus will probably run the newest Android OS right now which is Ice Cream Sandwich. From the looks of the Memo, it may not have a foward facing camera, but will spot a quad core Tegra 3 processor (simiular to the current Transformer Prime) but at a smaller screen size and at a much more affordable price.

This is the magic price range that I think a lot of consumers will more likely go for if they aren’t going to splash out $500 for a new iPad.

Only time will tell if we get a sub $250 Asus Nexus tablet this May. If so, I will definitely be picking one up!