No, you didn’t read that wrong, you also aren’t going crazy. There are rumors spreading around now that a $99 budget version (as if $200 isn’t already budget) of the Nexus 7 spreading around. This rumor has already come up once, but then again, it took the iPad mini a couple of years worth of rumors before it actually hapenned.
This $99 Nexus 7 is said to have a 1024 x 600 resolution screen versus the 1280 x 800 screen on the $200 nexus 7. That’s not much of a difference, but yet it is when you realize that it is a difference between HD and SD. That’s not even 1024 x 768, which probably has to deal more with the dimensions of the tablet. Still, a $99 Nexus 7 would still most likely be better than any of the other budget Android tablets out that at or below that price. Still, people will buy it.
In all honesty, I’d try to get the Nexus 7 that is only $100 more, rather than the budget Nexus 7. It’s not because of it having a bigger and better processor with twice the cores, it’s because the budget nexus 7 doesn’t have an HD screen. Most people could do without the extra cores, but you should never go with a low resolution screen, if you can avoid it.
If this tablet is released, there is no doubt that Google will be in the hands of even more people. There are already $99 tablets on the market, but they are from unknown brands and are often crap. If Google put their budget tablet next to those, chances are people would go for the Google tablets.