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Microsoft Pri0

Welcome to Microsoft Pri0: That's Microspeak for top priority, and that's the news and observations you'll find here from Seattle Times technology reporter Matt Day.

November 6, 2012 at 10:19 AM

Seven-inch Xbox Surface tablet on the way?

Microsoft may be entering the 7-inch tablet fray soon with a device clearly associated with two of the buzziest Microsoft products in years: Xbox and Surface.

The Verge is reporting that Microsoft is working on Xbox Surface, its own branded 7-inch gaming tablet.

According to The Verge:

Multiple sources familiar with plans within Redmond have confirmed to The Verge that initial hardware planning for an Xbox Surface is underway. … The Xbox Surface will likely include a custom ARM processor and high-bandwidth RAM designed specifically for gaming tasks. We’re told these specifications could be altered to accommodate an unannounced Intel SoC and that the Xbox Surface is being developed independent of specific hardware architecture.

Surface, Microsoft’s first foray into its own branded computing devices, has generated a lot of excitement for the company — not to mention potential profit margins.

A report from research firm IHS says that Microsoft and Apple are garnering the highest profit margins for their tablets, followed by Google and Amazon, according to The Associated Press.

The base model of Surface (excluding keyboard cover) is priced at $499, and costs about $267 to manufacture, according to the AP story.

Could an Xbox Surface accomplish the same double feat of generating both high buzz and (potential) profits?

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