Update: A reader has pointed out to me that the Playbook has been discontinued. There's been no announcement from Blackberry, and even though this tablet has been updated recently and is still available for sale, I think he's correct.
That's not bad for a first effort, and as a result of their success Tesco has confirmed that they are planning to launch a second model later this year. They have not released any details or specs on the new tablet, but there is a good chance that the new model will also be developed in partnership with Archos.
The Tesco Hudl was launched as a subsidized tablet along the lines of the Kindle Fire. In addition to Google Play, the Hudl also ships with Tesco's BlinkBox service, which sell ebooks, music, and video. Consumers in the UK can also use the Hudl to order groceries from Tesco.
Tesco has not revealed whether the subsidized model is working for them, merely saying that "Blinkbox services also continue to grow ". Their most recent financial report does mention that online sales were up 11% while overall revenue fell 6%.
I doubt they would plan a second tablet unless they were at least breaking even on the first.