There's been recent speculation that Microsoft (NASDAQ:MSFT) is planning on launching a new 7-inch tablet to add to its Surface brand of devices. This new device is allegedly going to be called the "Xbox Surface" and geared heavily toward gaming uses. Microsoft has a strong position in the gaming market, which it could easily leverage to boost a 7-inch model. This particular tablet is said to run on Intel (NASDAQ:INTC) chips. All of its main competitors now have both small- and full-sized tablet offerings. (NASDAQ:AMZN) has the Kindle Fire HD and 8.9-inch Kindle Fire HD, Apple (NASDAQ:AAPL) has the iPad Mini and iPad with Retina display, while Google (NASDAQ:GOOGL) offers the Nexus 7 and Nexus 10. A competitive response in the 7-inch arena makes perfect sense.

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