According to Microsoft insiders who talked to The Verge, the company is working on a 7 inch Xbox tablet.
The new tablet, currently named “Xbox Surface,” sports a custom ARM processor and high-bandwidth RAM and is designed specifically for gaming.
Xbox Surface tablet will have its own Windows version that runs on a custom kernel tailored for increasing gaming performance. It will be able to run messaging applications and other tablet programs, but its main focus will be on gaming.
Note: The photo beside this article is not related to the unannounced Xbox Surface tablet. The tablet shown in the photo is a traditional tablet running SmartGlass application.