Rumors have swirled that Microsoft is developing a high-powered 7-inch gaming tablet dubbed Xbox Surface, the Reese's Peanut Butter Cup of Microsoft's homegrown hardware brands. Such a move would change the landscape of Microsoft's Xbox and portable game initiatives. It would mark a reversal for the company, which has stayed out of the increasingly challenging handheld space in favor of promoting Windows Phone as part of its ecosystem battle. However, it would be in keeping with Steve Ballmer's promise (or is it OEM warning?) to expect more hardware from Microsoft. As the tablet was partly Apple's answer to the netbook, it could also be Microsoft's answer to the PlayStation Vita.