There was one key element noticeably absent from tech giant Microsoft's (MSFT 1.82%) launch of the first major revamp to its Surface line of tablets this week -- a smaller Surface.

Microsoft's struggles to gain traction in the booming tablet space have been well-documented at this point. However, it was widely hoped that Microsoft would address some of the more glaring issues holding back this crucial line of tablets with this week's update. Unfortunately, it didn't.

All might not be lost, though. According to several prominent sources, Microsoft still plans to launch a smaller form factor tablet this year. If that is in fact the case, that would be welcome news for Microsoft investors because reaching a smaller form factor could prove to be a key growth driver that Microsoft so badly needs in this booming space. In this video, Fool contributor Andrew Tonner gives two reasons why Microsoft needs a smaller Surface -- and soon.