The Surface has barely taken off, and there's already news of a 7-inch gaming tablet which Microsoft is rumored to be working on. A recent report filed by The Verge highlights that "multiple sources familiar with plans within Redmond have confirmed that initial hardware planning for an Xbox Surface is underway". Leaked specifications for the Xbox Surface 7-inch tablet were also confirmed and verified by these sources.
Although the Xbox Surface is said to carry a custom ARM workhorse, it is likely the processor will be replaced with an unannounced Intel SoC prior to its launch. The tablet will utilize high-bandwidth memory chips (RLDRAM II) as well, designed to tackle the more intensive demands of gaming tasks. Other specs include a 1280 by 720 pixel resolution with 250GB worth of internal storage. Instead of a full version of Windows, however, the Xbox Surface will be powered by a custom Windows kernel. Basic tablet functions will be supported, but gaming features will be given precedence.
The article also suggests that the 7-inch gaming tablet will be manufactured in the same factories as Microsoft's clandestine production plants for the Surface, while future "Xbox 720" consoles will be produced by Chinese tech companies like Foxconn or Pegatron.
Source: The Verge