Microsoft is rumoured to be building an Xbox-Surface tablet, apparently coinciding with the release of their next-generation console.

According to internet sources the software maker is preparing to launch a 7-inch gaming accessory in a move to combine the company's gaming console with its new line of tablet PCs.

Sources close to online site The Verge says that initial hardware planning for an Xbox Surface is underway, with the final implementation currently being worked on.

The site claims the new product will likely include a custom ARM processor and a high-bandwidth RAM designed specifically for gaming tasks.

The focus is set to be purely on gaming, with Microsoft expected to avoid running a full version of Windows, instead favoring a custom Windows kernel.

Reports coming out of Redmond suggests Microsoft has locked down several Xbox-related buildings across their properties, offering employees limited access to their Interactive Entertainment Business division.

But despite the rumours circulating online, when asked about the Xbox Surface, Microsoft said it refused to comment on speculation.

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