Acer has announced the Iconia Tab 8 W, a Windows 8 tablet with Office 365 that costs £120. The new device, announced at the IFA trade show in Berlin, is part of Microsoft's plan to launch cheaper tablets to compete with Android.

The budget Windows 8 tablet comes with Windows 8.1 with Bing, a slightly different version of Windows 8.1 created for low spec devices. It also comes with a one-year subscription to Microsoft Office 365. Despite being a tablet it doesn't run Microsoft's much-maligned Windows RT operating system.

One the inside the Iconia Tab 8 W runs an Intel Atom Z3735G quad-core processor and has a 8in 1280x800 screen. Acer said its "slim profile" – it measures 9.75mm and weighs 370g – made it ideal for work on the go. There are also cameras on the front and back, a microSD port, micro USB and a promised eight hours of battery life.

First announced in May, Windows 8.1 with Bing is aimed specifically at cheaper hardware. The only difference between it and the standard version of Windows 8.1 is that Bing is set as the default search engine. That chance aside, the operating system is exactly the same as Windows 8.1. It is likely that Microsoft has been selling Windows 8.1 with Bing to manufacturers at a discount to help them cut in-store prices.

At £119.99 the Iconia Tab 8 W is closer than ever to budget Android devices already flooding the market. Microsoft is hoping that the allure of Windows 8.1 will persuade people to opt for its cheap devices instead. The Iconia Tab 8 W will launch in the UK in November.

Not wanting to put all its eggs in one basket, Acer also announced the Iconia Tab 10 (pictured) and Iconia One 8. Both are budget Android tablets running Android 4.4 KitKat and costing £139.99 and £199.99 respectively.

The 10in Iconia Tab 10 runs on a MediaTek quad-core processor and comes in black and white, while the 8in Iconia One 8 runs a cheap and cheerful Intel Atom Z3735G quad-core processor and is available in ten colours. Both Android tablets will launch in the UK in October.