Report: Microsoft working on 7-inch Xbox Surface gaming tablet

The Verge has reported today that Microsoft is creating a 7-inch gaming tablet called the Xbox Surface.Sources supposedly confirmed the plans, with the company already in development of the tablet.

The tablet will run a version of Windows 8, but not Windows 8 Pro since the tablet will be based on an ARM SoC. It is unclear whether the tablet will pack Windows RT, however.

Specifications of the alleged tablet are an ARM-based Texas Instruments processor with 288MB of RLDRAM 2 and a resolution of 1280 x 720. The rest of the supposed specs are posted below.

Adds Tom Warren of the Verge:

Microsoft has developed a secret hardware production process for its Surface tablets that is separated from partners that traditionally manufacturer the company's Xbox console. We're told that the Xbox Surface will likely be manufactured in the same factory, but that any future "Xbox 720" console will be manufactured in mass quantities by companies like Pegatron or Foxconn.

We've learned that part of the Xbox Surface is being developed at Microsoft's offices in Silicon Valley. The software giant recently locked down several Xbox-related buildings, limiting employee access to the company's Interactive Entertainment Business division. The lock down is likely related to Microsoft's increased testing of the tablet, providing a way for other parts of the Xbox team to build games and software for the device. Providing the project doesn't get killed in favor of a full 7-inch Windows tablet, in the same way Microsoft axed Courier, expect to see the Xbox Surface debut ahead of Microsoft's future Xbox console.

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Two More Teardowns Look Inside Microsoft Surface and Amazon Kindle Fire HD

Now, on to the Kindle Fire HD. (Seen in its exploded view at right; click to make bigger.) Recall that the last Kindle Fire to get the tear down treatment came in with a cost estimate of $202 (later revised down to about $187) against a retail price of $199, meaning that Amazon was close or near to losing money on the hardware, and was hoping to make it back on the sale of content from its digital store, and even on sales of physical goods from its retail store. One estimate earlier this year suggested that Amazon makes more than $100 off each Kindle Fire. It’s probably pretty close to break even  if slightly profitable this time around, Rassweiler told me. Amazon CEO Jeff Bezos has said the devices are sold at cost.

Like the old one, the new Kindle Fire HD sells for a starting price of $199, and carries a combined cost of components of $165, according to IHS estimates. Key suppliers are LG Display, which made the screen; Texas Instruments, which repeated its role as the supplier of the main processing chip, plus power and video chips; and Samsung, which provided the memory.

At this point, it’s probably worth looking back at a few more teardowns we’ve written about in recent memory, though its worth pointing out that the cost of components come down over time. In fact, manufacturers depend on that, because a product becomes more profitable as the parts used in them get cheaper. Anyway, here are a few previous teardowns: Apple’s iPhone 5; Samsung’s Galaxy Note Tablet; Google’s Nexus 7 Tablet; and Apple’s iPad with Retina display, circa March of this year.

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