A Microsoft 'Xbox Surface' Tablet Could Bridge PC-Mobile-Console Gaming

Microsoft is also reportedly considering a Surface phone, according to the rival BGR site. 

If the reports are true, an “Xbox Surface” tablet would give Microsoft something of a head-to-head competitor to the Sony PlayStation Vita and the Nintendo 3DS. Technically, Microsoft already has a mobile gaming platfrom: Windows Phone, which is moving into Windows Phone 8. Games like Dragon’s Blade and Dungeon Stalker take advantage of Windows Phone 7 (and 8), providing the platform with entertainment for Windows Phone users to enjoy on the subway or an airplane. But the quality of the games pales to what Microsoft’s game console, the Xbox 360, offers; gaming sites like PocketGamer usually give short shrift to Microsoft’s phone games. 

Mobile Gaming On The Rise

Statistically, the rise of mobile gaming clearly justifies a Microsoft foray into the market. In September, analyst group NPD (which provides reports ranking the various game consoles and games by unit sales) said that the number of “mobile gamers” climbed 9% from a year ago, to a total of 23%  of the 211.5 million U.S. gamers, or a total of 46.53 million mobile gamers. Since the number of total gamers actually decreased 5%, that means that mobile gamers are growing both in absolute numbers as well as a percentage of the whole.

What NPD doesn’t do - publicly, at least - is break out the numbers for each console. However, a recent report from the Associated Press does a nice snapshot of how console makers are faring. Microsoft, for example, says it shipped 1.7 million Xbox 360 consoles during the latest quarter, down 26% from 2.3 million a year earlier. Sony shipped a total of 3.5 million PlayStation 2 and PlayStation 3 units for the quarter, down from 4.9 million a year ago. And Nintendo said it sold 1.32 million Wiis for the six-month period ending in September, down from 3.35 million a year ago.

The mobile market is a bit more vague. Nintendo didn’t break out its portable shipments, and Sony said it sold 1.6 million portable PlayStation units (possibly including the Vita) versus 1.7 million units a year ago. That probably means that there’s a market opportunity for Microsoft, if it chooses to head down that path.

What Games Would An Xbox Surface Run?

But there's a simple question that hasn’t yet been answered: Would an Xbox Surface tablet actually run Xbox games?Currently, the Xbox 360 is powered by the so-called Xenon chip, a triple-core IBM PowerPC chip. That’s an entirely different architecture than the ARM processor found within the Apple iPhone5 or all Android phones. And that, in turn, means that games written for a custom ARM processor in an Xbox Surface tablet would require a custom port to the tablet by the developer itself. It also means, however, that Windows Phone games should work without too much trouble. Designing a tablet around a custom Intel chip seems to make more sense, as it would likely provide the X86 compatibility needed to run true Windows apps, which have already begun straddling the Xbox console and PC anyway.

An ARM-powered Xbox Surface tablet might resemble the Surface RT: a low-cost, specialized platform that would require custom apps. That doesn’t mean those apps wouldn’t be written, but it would require additional development effort (and most likely financial incentives from Microsoft) to start building an app ecosystem for the Xbox Surface. And would PC-quality games run well on a tablet? Doubtful.

Other Possibilities

There are a couple of other possibilities: Sony recently bought Gaikai, a cloud-gaming company that is being assimilated into the PlayStation space. Microsoft has already announced that its latest Halo 4 offering is being powered by its Azure cloud software; it’s not too far-fetched to think that Microsoft could be planning some form of streamed offering, either using the Xbox 360 console for local processing or going all the way back to its own in-house servers. Either way, that would help Microsoft circumvent the limits of an Xbox Surgace tablet.

This could also simply be a blown-up marketing effort. Both Sony and Microsoft have released “custom” Xbox hardware tied to a specific game; it’s possible that this could simply be an “Xbox” branded Surface tablet with the SmartGlass “second screen” app front and center.

Xbox Music Offer Free Music Stream

Today, people need to use multiple music servies to get exactly what they want. There are download-to-own music services, Internet radio services and subscription services that allow you to consume all the music you want. But, as more music services have emerged, it’s become harder than ever to enjoy the music you want — and to experience it the way you want it, on any device. Whether it’s music you’ve purchased on your smartphone, a music app on your tablet, listening to songs through the living room TV or turning to Internet radio on your PC at work, the music you love is scattered across different services. Enjoying music today requires too much work.

To solve this problem, Microsoft Corp. is introducing Xbox Music, the first all-in-one music service that gives you the freedom to stream custom-created playlists for free, subscribe to all the music you want or download-to-own your favorite songs. Through the power of the cloud, it effortlessly integrates the music experience across your tablet, PC, phone and TV.1 With more than 30 million songs in the global catalog, Xbox Music begins rolling out around the world tomorrow on Xbox 360 and later this month on Windows 8 and Windows RT PCs and tablets and on mobile phones, starting with Windows Phone 8 at launch and additional platforms later.

All the Music You Love, Every Way You Want It

Today, music is hard to manage, and no one has mastered ubiquity or created a service that works together to make music easy for the user. Xbox Music makes music simple by offering immediate and comprehensive discovery across the different types of devices you own, free streaming music on Windows 8 and Windows RT tablets and PCs, the ability to purchase songs and albums, a compelling music subscription, and artist-based radio. The all-in-one Xbox Music service includes the following:

• 
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  Free streaming1 music on Windows 8 and Windows RT. Enjoy on-demand access to tens of millions of songs for free on all Windows 8 and Windows RT tablets and PCs. Discovering and enjoying free music on Windows 8 and Windows RT is as easy as typing an artist or song name and hitting “play” — songs are instantly available to stream and for you to create an unlimited amount of playlists.
• Xbox Music Pass. Want unlimited access to the songs and artists you care about, including offline access? Get an Xbox Music Pass for ad-free, unlimited playback of any track in our subscription catalog across your tablet, PC, phone and Xbox 3601 for US$9.99 per month.2 Xbox Music Pass also unlocks unlimited access to tens of thousands of music videos on your Xbox 360.
• Xbox Music Store. Want to own the music you love? The Xbox Music Store is a comprehensive MP3 marketplace giving you the opportunity to purchase a single track or entire album on your Windows 8 or Windows RT tablet or PC and Windows Phone 8.
• Smart DJ. Creating a new form of artist-based radio, the Smart DJ feature is a quick and dynamic way to personalize your collection, discover new favorites and create ultimate playlists by launching instant mixes based on your favorite artists. With unlimited skips and a view of the full recommended music stream, Smart DJ puts you in control of your Internet radio experience.
• Cloud Storage. Available in the coming year, a scan-and-match feature will take you beyond the 30 million tracks globally offered through Xbox Music. It will add all the music you own to your Xbox Music cloud catalog, including music acquired through other services. This means you can add almost any content you have to your personal Xbox Music collection, even if it’s not available in the Xbox Music catalog.

• Platform Expansion. Xbox Music will become available on other platforms in the coming year.

Xbox Music isn’t just a listening experience that shows your tracks in spreadsheets and lists. Taking full advantage of every screen on which you enjoy music, Xbox Music elevates your music experiences with striking visuals. As you listen on your tablet, PC, phone or TV,1 your screen comes to life with artist photos, bios, cover art and discography.

Cloud Powered

The ubiquity of Xbox Music is powered by the cloud. Whether it’s free streaming2 on Windows 8 and Windows RT, a subscription on Windows Phone 8 or tuning into a playlist on Xbox 360 — each experience is cloud-based for immediate access to your entire catalog, making music management simple. With the cloud sync feature, your favorite playlists are no longer held captive by the individual device on which they live. For Xbox Music Pass subscribers, you can create the perfect playlist on your Windows 8 or Windows RT tablet and see it automatically appear on your Xbox 360 or Windows Phone 8.

Music Heard Around the World

Xbox Music launches with a global catalog on par with iTunes, offering 30 million tracks from some of the leading music labels around the world. It will be available on all Windows 8 and Windows RT tablets and PCs and on Windows Phone 8 smartphones, and it will be part of the 2012 console update for Xbox 360. Free streaming1 on Windows 8 and Windows RT tablets and PCs launches Oct. 26 in 15 markets worldwide. Xbox Music Pass will be available for windows 8, Windows RT and Windows Phone 8 in 22 markets worldwide; it will begin rolling out tomorrow on Xbox 360 in the same markets. Xbox Music Store will also be accessible on Windows 8, Windows RT and Windows Phone 8 in 22 markets worldwide as devices become available. Microsoft will continue introducing Xbox Music in new regions around the world throughout the coming year.

Xbox Music heads to Xbox 360 first tomorrow, PC / tablets on Oct. 26, WP8 soon after; we go hands-on

When Xbox Music goes live tomorrow on the Xbox 360, console owners will be the first to access theSpotify-esque service from Microsoft. Well, some of them will at least -- existing Zune Pass subscribers (now an "Xbox Music Pass") and folks willing to pony up $9.99/month or $99.90/year who also have an Xbox Live Gold account gain access to Xbox Music's 30 million global song database via data stream . Okay, okay, a free trial is available for 30 days. After that, though, 360 owners lose access unless they pay up.

Then, on October 26, Windows 8 PC and tablet users get the service for free -- with or without the Xbox Music Pass -- albeit with ads laced in. Windows Phone 8 is in the same boat with Xbox folks: no song-specific streaming without an Xbox Music Pass. That won't arrive until some time "soon after" the PC/tablet version. Microsoft says the ad-supported free streaming is unlimited on PC and tablet, but that's only for the first six months, after which it becomes time limited. A bummer for sure, but Microsoft's banking on you digging the service enough to snag an Xbox Music Pass. But will you?

Like with Spotify and Pandora, some basic artist info, album/song info, and images garnish playing tracks, though not all artists are created equal -- some artists had no images, while others had a detailed dossier. Microsoft says it's adding more all the time, though. Xbox Music Pass holders can hang on to tracks for offline listening as well, which show up in your library and can be added to playlists. And should you wish to listen to a "Smart" radio station based on an artist/song/album, you can employ the "Smart DJ" (previously "Smart Playlist") to create just such a station. The whole shebang is tied directly to your Microsoft login, mirroring settings and library data on all your devices (Xbox 360 included) across the cloud. That same concept applies to playback, as you can pause a song on one device and pick it up right where you left off on another. Songs can also be purchased through the streaming service with or without the Xbox Music Pass, should you really want to hold onto that Barry Manilow track.

The tile and pin design is nigh identical across all Xbox Music platforms -- the now commonplace Microsoft Helvetica against contrasting colors, with content occasionally arranged in sets of tiles. On the Xbox 360 it runs sluggishly, plodding through each menu as the aging hardware is wont to do, though Kinect voice commands help alleviate the feeling of lag. That situation thankfully doesn't apply on tablets and smartphones, at least on the two unnamed devices we used. Navigating content is relatively easy and intuitive, with the touchscreen offering the easiest accessibility -- the Metro UI really begs to be used with a touchscreen device.

Unlike its PC, tablet and smartphone brethren, the 360 version of Xbox Music isn't capable of being used in the background while executing other applications -- everything else aside, this is the service's most glaring flaw. Though some folks may navigate to the Xbox Music application and launch it just to catch up on some tunes, the inability to plug that music into a game experience is a massive oversight. Considering that functionality already exists for music stored on the 360's HDD, it's hard to understand how this doesn't carry over to the company's new flagship music service.

Xbox Music is the next big push for Microsoft, and it launches first on Xbox 360 tomorrow -- replacing both the "Zune" name and Windows Media Player in one fell swoop (the second death of the Zune, if you will). Windows 8 tablets and PCs get it at launch on October 26, while Windows Phone 8 gets it "shortly after." The service is also heading to unnamed other platforms, says Microsoft, "at a later date." When fully launched, Xbox Music and its store will comprise 22 regions worldwide, and the free streaming service for tablet and PC is headed to 15. Microsoft anticipates adding additional regions "throughout the coming year."

Entertainment Keeps Getting Better on Xbox

Last year, Xbox added voice search powered by Bing and the power of Kinect, making it easier to find the entertainment you want. This year, voice search is expanding to 12 additional countries: Australia, Austria, Brazil, France, Germany, Ireland, Italy, Japan, Mexico, New Zealand, Spain and Switzerland.

Adding to the current catalog of customized sports, TV, movies and music apps from world-leading TV and entertainment providers, this year Xbox will continue to deliver all the content you care about in unique ways.

• Your home for sports. Microsoft announced more must-have sports experiences and content coming to Xbox this year, further establishing it as the home for sports fans everywhere.
• NBA Game Time with NBA.com League Pass Broadband (U.S.) and NBA League Pass (outside of the U.S.). Fans who subscribe to NBA.com League Pass Broadband will have access to hundreds of out of market live games (blackout restrictions apply in the U.S. and some international markets), plus highlights from around the league and up to the minute stats of your favorite players.
• NHL GameCenter LIVE (Worldwide except Denmark, Finland, Norway, Sweden). Hockey fans will be able to enjoy every moment of the live action as it happens on the ice, with live games (out-of-market and blackout restrictions apply), more in-game interactivity, and replays and highlights on demand any time.
• ESPN (U.S.). Later this year fans will enjoy 24/7 live programming through WatchESPN from ESPN Networks – ESPN, ESPN 2, ESPN 3 and ESPN U. All the favorites, including “SportsCenter,” “SportsNation,” “The Mike and Mike Show,” as well as ESPN’s coverage of the NFL, MLB and the NBA, will be live on Xbox. 

• More TV and entertainment. Today, Microsoft announced more than 35 new content partners launching on Xbox over the next 12 months, including:
• Absolute Radio – U.K.
• Ameba TV – Canada, U.S.
• BreakMedia – Australia, Canada, India, Ireland, Singapore, South Africa, U.K., U.S. 
• Comedy Central Stand Up – U.S.
• Comoyo – Denmark, Norway, Sweden
• Corus Entertainment's Franklin the Turtle – Canada
• GameSpot TV – Australia, Canada, U.K., U.S.
• Headweb – Denmark, Finland, Norway, Sweden
• Indie Flix – U.S.
• Machinima – All Xbox LIVE markets
• Napster – Germany, U.K.
• Nickelodeon – U.S.
• Paramount Movies – U.S.
• Picturebox – U.K. 
• Quickflix – Australia, New Zealand
• Rakuten ShowTime – Japan
• Revision3 – Canada, U.K., U.S.
• Rhapsody – U.S.
• RTL XL – Netherlands
• Slacker Radio – Canada, U.S.
• SnagFilms – U.S.
• Terra (Sunday TV) – Brazil, Chile, Colombia, Mexico
• The AOL On Network – Australia, Canada, Netherlands, U.K., U.S.
• The Weather Channel – U.S.
• The Whistle – U.S.
• TOU.TV – Canada
• TV3 – Spain
• Twitch TV – U.S.
• Univision – U.S.
• Wuaki – Spain
• Youzee – Spain

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Microsoft's Xbox Tablet to Take on Apple, Sony and Nintendo

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By developing its own handheld game system (or tablet, depending on how Microsoft chooses to market the device), the company would finally be given a portable outlet for these and other major franchises.

According to The Verge , "Multiple sources familiar with plans within Redmond have confirmed" that Microsoft is planning an Xbox version of the Surface tablet.

"The Xbox Surface will likely include a custom ARM processor and high-bandwidth RAM designed specifically for gaming tasks," The Verge speculates. "We're told these specifications could be altered to accommodate an unannounced Intel (NASDAQ: INTC ) SoC and that the Xbox Surface is being developed independent of specific hardware architecture. Microsoft's Xbox Surface won't run a full version of Windows, rather this 7-inch tablet will run a custom Windows kernel. Messaging and other tablet functions may be supported, but the focus is on gaming."

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Microsoft expressed its interest in the tablet space last June when it unveiled Xbox SmartGlass . The new interface allows Xbox 360 users to interact with the console using a smartphone or tablet from virtually any manufacturer.

Two weeks later Microsoft announced its plans for a major press event. No one knew exactly what the company had in store, but rumors indicated that Microsoft was building an Xbox-branded tablet . Other rumors suggested that the tablet may be developed in conjunction with Barnes & Noble (NYSE: BKS ), but those rumors were quickly debunked .

The resulting tablet, Surface, did not contain the Xbox name. In fact, gaming has been mysteriously absent from the Surface marketing blitz, which focuses on videos, Web surfing, the unique user interface and the ability to turn an image into a password.

This might be part of Microsoft's long-term strategy -- to sell Surface to students, business users and regular Joes, and to sell its unconfirmed Xbox tablet to gamers.

By building a tablet specifically for gaming, Microsoft has the opportunity to reach an audience that goes well beyond its existing customer base. According to VGChartz , Microsoft has sold roughly 70 million Xbox 360 units worldwide. This is in addition to the 97 million Wii systems and the 67 million PlayStation 3 consoles that have already been sold.

During the last generation of game consoles, the Xbox 360 was the first new machine to arrive. It shipped a full 12 months ahead of Wii and PlayStation 3, but they still managed to take more than 2/3 of the global market.

The handheld space is much different. As of this writing, 21 million people have purchased the Nintendo 3DS. Sony's new handheld, PS Vita, has sold a little more than three million units.

During the last generation, the Nintendo DS sold a whopping 152 million units. PlayStation Portable sold more than 75 million units.

This suggests that the global handheld gaming market includes more than 200 million consumers. While some would argue that Apple and Google (NASDAQ: GOOG ) have reduced that market by redirecting consumers to smartphones, the proof will be in the pudding. Thus far, consumers have not liked what Sony and Nintendo have offered. They balked at the high prices and weak game selection .

At the same time, Android and iOS gamers remain underserved. iPhone users may be able to play a thousand versions of Angry Birds, but that does not make up for the fact that iOS devices lack the capacity to power a full gaming experience. The same can be said for Android smartphones and tablets. Microsoft has an opportunity to change that by building a handheld device that is on par with the current Xbox.

Raw horsepower is not enough to sell a device, however. PS Vita is proof of that. It contains a gorgeous, five-inch screen and one of the most powerful graphics processors available, but its game lineup has yet to justify the $249 price tag. That may change in 2013, but by then it could be too late for Sony.

Microsoft must be careful in how it chooses to price its portable gaming device. If the price falls somewhere in the $200 to $300 range, it will need to launch with several popular franchises. Halo alone could move mountains, but it is not enough.

At seven inches, Microsoft cannot get away with charging $500. But if it has enough popular games, the company could match the iPad Mini's MSRP of $329. Content -- gaming content -- is key.

Buttons are another important and differentiating factor. Without them, games will be limited by what developers can do with a touch screen. When developers are creative, the touch screen can be an effective control option. But for most advanced games (particularly those that sell well on Xbox 360), buttons are a must.

Nintendo has the right idea with its newest console , Wii U. The Wii U gamepad includes both a touch screen and a series of buttons, just like the Nintendo DS and 3DS. But unlike Nintendo's handheld systems, the Wii U gamepad is more like a tablet. The screen is wider and includes a stylus. It is tethered to the Wii U console, however, so consumers cannot use it as a handheld device.

Xbox Surface: Microsoft's 7-inch gaming tablet

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Microsoft is building its own 7-inch gaming tablet. Multiple sources familiar with plans within Redmond have confirmed to The Verge that initial hardware planning for an Xbox Surface is underway. Specifications for an Xbox Surface 7-inch tablet computing device leaked back in June ahead of Microsoft's Surface RT and Surface Pro announcement. We're told that the initial specs were accurate and that the final implementation is being worked on.

The Xbox Surface will likely include a custom ARM processor and high-bandwidth RAM designed specifically for gaming tasks. We're told these specifications could be altered to accommodate an unannounced Intel SoC and that the Xbox Surface is being developed independent of specific hardware architecture. Microsoft's Xbox Surface won't run a full version of Windows, rather this 7-inch tablet will run a custom Windows kernel. Messaging and other tablet functions may be supported, but the focus is on gaming.

SECRET HARDWARE, SECRET MANUFACTURING

Microsoft has developed a secret hardware production process for its Surface tablets that is separated from partners that traditionally manufacturer the company's Xbox console. We're told that the Xbox Surface will likely be manufactured in the same factory, but that any future "Xbox 720" console will be manufactured in mass quantities by companies like Pegatron or Foxconn.

We've learned that part of the Xbox Surface is being developed at Microsoft's offices in Silicon Valley. The software giant recently locked down several Xbox-related buildings, limiting employee access to the company's Interactive Entertainment Business division. The lock down is likely related to Microsoft's increased testing of the tablet, providing a way for other parts of the Xbox team to build games and software for the device. Providing the project doesn't get killed in favor of a full 7-inch Windows tablet, in the same way Microsoft axed Courier, expect to see the Xbox Surface debut ahead of Microsoft's future Xbox console.

We asked Microsoft for a comment on an 7-inch Xbox tablet, a company spokesperson says the firm does not comment on rumors or speculation.

What Could Work, On An Xbox Tablet

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First things first, though: these days at Microsoft, Xbox doesn’t just mean gaming. The company’s new music service, for example, is called Xbox Music. What was once simply the brand name for a console is slowly becoming a catch-all term for anything Microsoft wants to do that’s “cool”, or aimed at a market that’s a little more interested in fun than the one interested in word processors and spreadsheets.

So an Xbox Surface would likely not be just a gaming machine. Sure, games would play a big part, easily the biggest, but you’d hope services like Xbox Music were tightly integrated as well (remember when custom soundtracks on the 360 was a thing?). Indeed, if it runs on a modified version of Windows, you’d hope for a full range of programs and services, from Netflix to Facebook.

Which is fine, and will look good at their presentation, but this is a video games website. Most of the time, anyway. So we’d be most interested in the games.

This is a 7-inch tablet, give or take an inch (it might be 7.6, or 7.8, etc). From specs leaked earlier in the year, the planned device apparently has a 1280×720 display, 7 hours of battery life and an SD card slot.

That’s not much to go on, but if it checks out – remember, this thing might not even get made! – it’s enough to get the big things out of the way: this won’t obviously play Xbox 720/Durango games. And it’s too powerful to be stuck playing Solitaire, Angry Birds and Windows Phone 7 titles.

Leaving us with a middle ground that should easily be able to handle original Xbox games, and given advances in mobile technology should even be able to run many Xbox 360 games, especially those released earlier in the console’s lifetime.

But then we run into a problem: it’s a tablet. As we know, tablets are great for touch-screen titles designed specifically for use on them, but for games designed with a ten-button controller, the compromises are often woeful. So if Microsoft wanted to launch some kind of “virtual console” on the platform, it would have three options: stick buttons all over a tablet (which won’t happen), release games that controlled like crap, or, more intriguingly, come up with some kind of controller solution, whether with some innovative proprietary system like the existing Surface’s keyboard, or just by letting us use 360 pads on the thing.

Just re-releasing old games, or Vita-like downports of current-gen titles, won’t cut it, however. Microsoft would need to entice developers to release new games for the system. The Xbox brand name and gaming focus would on the one hand be exciting for some developers, who could design games for a tablet designed for serious gaming, not just $US2 casual experiences.

Yet there’s the rub: if this is a tablet, it’s entering a marketplace where $US2 for a video game is now an expectation, and if an Xbox tablet started charging more than that, it might run into resistance from consumers. Yet if it was charging $US2 for smaller, cheaper games…what would be the point? We can get those on an iPad, Nexus or even Surface already.

As we’re seeing, whichever way Microsoft goes with a gaming tablet, it’s going to be taking risks. By opting for the form of a tablet, and not something like a dedicated gaming handheld platform, it’s risking control issues with many types of game that we associate with the Xbox platform. And by launching as a gaming tablet, it’s going to be entering a marketplace where even Nintendo is feeling the pressure from a flood of cheap, disposable games.

But hey, like I’ve said, this thing might not even make it to market. If it does, though, well. The video game market has been pretty stale of late. Regardless of how weird its approach would be, seeing Microsoft throw its weight, and the Xbox brand, behind a gaming tablet would at least be one hell of an interesting thing to see.