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.

Fool contributor Evan Niu, CFA, owns shares of Apple. The Motley Fool owns shares of Apple,, Google, Intel, and Microsoft. Motley Fool newsletter services recommend Apple,, Google, Intel, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.