Microsoft Making 7-inch 'X-Box Surface' Tablet

The latest gossip out of Silicon Valley: Microsoft is developing a new, 7-inch gaming tablet known as the Xbox Surface, insiders tell The Verge. The device, still in the testing stages, will contain hardware designed specifically for games, though some basic tablet and Windows features may be incorporated. Fueling the rumors is the fact that Microsoft recently limited employee access to its Xbox buildings; The Verge speculates that's so the company can run testing for the tablet. If it all turns out to be true, expect to see the Xbox Surface show up before the next Xbox console debuts. (More Microsoft stories.)