Specifically, as it is stated, Microsoft is developing a new line of Surface tablets, including a 7 inch model. Mass production of smaller tablets, according to the WSJ, is expected to begin later this year. Also, sources say that the Microsoft recently decided to develop a smaller Surface, in response to the iPad mini and Nexus 7. Given that they have recently lowered the minimum requirements for resolution making it only 1024x768 pixels, we should also expect smaller tablets with Windows 8 to arrive from other computer manufacturers.

Separate from this story, according to The Verge, Microsoft is also working on the development of 7 inch tablet for gamers that will be marketed under the name Xbox. Looks like Razer Edge could be getting competition in near future, great news for all gamers.

[Ed - Although there is a push for the smaller 7-inch tablet this is a mistake for Microsoft. The Windows RT version of the Surface is not selling well and it is certainly not becuase of the size of the screen. However, as we have seen all too often in the past Steve Ballmer is going to do what he wants to even if it drives Micrsooft into the ground. What we are most surprised about is that Ballmer is actully still in charge at Microsoft. You think that after the last couple of failures and the drop in PC sales (due to bad OS choices) that Microsoft would be looking for a new leader... Maybe that is what will help turn things around for them, but what we have seen in histroy it is unlikley to happen no matter what Ballmer does.]

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