Apart from the manufacturing details of the latest XBOX 720 which is touted to become Microsoft’s next-gen console, the Redmond company is also rumored to be building a brand new gaming experience called the XBOX Surface. This is, in essence a stripped down Windows 8 tablet sized into a 7-inch housing for touch enabled gaming. This move makes a lot of sense and seems more to be the real deal rather than vaporware. Windows 8 already supports XBOX heavily as music, video and Gamertags are already synced up with the tablets.
I believe Microsoft is building an even more portable and dedicated gaming experience as they currently do not have a formidable portable gaming ecosystem that ties to their console hardware unlike their competitor Sony that has the PS Vita and PS3 cross-compatibility.