Hewlett-Packard originally planned to release a Windows RT-powered tablet later this year. Due to Microsoft’s recent Surface announcement and the high cost of licenses, however, the PC maker has scrapped its RT tablet plans. The rumor was first reported by SemiAccurate, which is also hearing that “just about every OEM out there is scrapping one or more [Windows RT] designs, with most renewing Android efforts with every resource at their disposal.”

Microsoft reportedly had an active roll in helping its partners developer Windows RT tablets. The software giant then allegedly capitalized on the shortcomings of those designs while stole their most innovative features to create a direct competitor. Microsoft will also be able to price its tablet lower than others because it won’t be forced to pay its own licensing fees. Manufacturers are “bailing fast” because they “can’t hope to be competitive,” the report claimed.

Bloomberg confirmed parts of the report with an HP spokesperson, who said that the company will instead focus on x86-based Windows 8 tablets. “The decision to go with x86 was influenced by input from our customers,” Somsak told Bloomberg. “The robust and established ecosystem of x86 applications provides the best customer experience at this time and in the immediate future.”

Read [SemiAccurate] Read [Bloomberg]