Okay so the rumors about an Xbox tablet being developed by Microsoft were only partially true.  Last night Microsoft revealed a new family of tablet hybrids called Surface.  They’re actually calling them a new family of PCs.  Naturally they’ll come built with Xbox Live and you’ll be able to stream things like Netflix and other apps currently available to the Xbox family.

Pricing hasn’t been confirmed but I’ve already unveiled the $499 tag on one of the models.  The higher end models will obviously cost a few pennies more.  They’ll be available at the end of the year for most models.  You can read the press release below for more specs.

Microsoft unveiled Surface: PCs built to be the ultimate stage for Windows. Company executives showed two Windows tablets and accessories that feature significant advances in industrial design and attention to detail. Surface is designed to seamlessly transition between consumption and creation, without compromise. It delivers the power of amazing software with Windows and the feel of premium hardware in one exciting experience.

Advances in Industrial Design

Conceived, designed and engineered entirely by Microsoft employees, and building on the company’s 30-year history manufacturing hardware, Surface represents a unique vision for the seamless expression of entertainment and creativity. Extensive investment in industrial design and real user experience includes the following highlights:

Software takes center stage: Surface sports a full-sized USB port and a 16:9 aspect ratio – the industry standard for HD. It has edges angled at 22 degrees, a natural position for the PC at rest or in active use, letting the hardware fade into the background and the software stand out.

VaporMg: The casing of Surface is created using a unique approach called VaporMg (pronounced Vapor-Mag), a combination of material selection and process to mold metal and deposit particles that creates a finish akin to a luxury watch. Starting with magnesium, parts can be molded as thin as .65 mm, thinner than the typical credit card, to create a product that is thin, light and rigid/strong.

Integrated Kickstand: The unique VaporMg approach also enables a built-in kickstand that lets you transition Surface from active use to passive consumption – watching a movie or even using the HD front- or rear-facing video cameras. The kickstand is there when needed, and disappears when not in use, with no extra weight or thickness.

Touch Cover: The 3 mm Touch Cover represents a step forward in human-computer interface. Using a unique pressure-sensitive technology, Touch Cover senses keystrokes as gestures, enabling you to touch type significantly faster than with an on-screen keyboard. It will be available in a selection of vibrant colors. Touch Cover clicks into Surface via a built-in magnetic connector, forming a natural spine like you find on a book, and works as a protective cover. You can also click in a 5 mm-thin Type Cover that adds moving keys for a more traditional typing feel.

An Amazing Windows Experience

Two models of Surface will be available: one running an ARM processor featuring Windows RT, and one with a third-generation Intel Core processor featuring Windows 8 Pro. From the fast and fluid interface, to the ease of connecting you to the people, information and apps that users care about most, Surface will be a premium way to experience all that Windows has to offer. Surface for Windows RT will release with the general availability of Windows 8, and the Windows 8 Pro model will be available about 90 days later. Both will be sold in the Microsoft Store locations in the U.S. and available through select online Microsoft Stores.

Contributing to an Expanded Ecosystem

One of the strengths of Windows is its extensive ecosystem of software and hardware partners, delivering selection and choice that makes a customer’s Windows experience uniquely their own. This continues with Surface. Microsoft is delivering a unique contribution to an already strong and growing ecosystem of functional and stylish devices delivered by original equipment manufacturers (OEMs) to bring the experience of Windows to consumers and businesses around the globe.

Additional Product Information

Surface for Windows RT

OS: Windows RT

Light(1): 676 g

Thin(2): 9.3 mm

Clear: 10.6″ ClearType HD Display

Energized: 31.5 W-h

Connected: microSD, USB 2.0, Micro HD Video, 2×2 MIMO antennae

Productive: Office ’15′ Apps, Touch Cover, Type Cover

Practical: VaporMg Case & Stand

Configurable: 32 GB, 64 GB

Surface for Windows 8 Pro

OS: Windows 8 Pro

Light(1): 903 g

Thin(2): 13.5 mm

Clear: 10.6″ ClearType Full HD Display

Energized: 42 W-h

Connected: microSDXC, USB 3.0, Mini DisplayPort Video, 2×2 MIMO antennae

Productive: Touch Cover, Type Cover, Pen with Palm Block

Practical: VaporMg Case & Stand

Configurable: 64 GB, 128 GB

(1), (2). Actual size and weight of the device may vary due to configuration and manufacturing process.

Suggested retail pricing will be announced closer to availability and is expected to be competitive with a comparable ARM tablet or Intel Ultrabook-class PC. OEMs will have cost and feature parity on Windows 8 and Windows RT.

For more information about Surface, visit http://www.surface.com.