http://www.theverge.com/2013/4/11/4211676/microsoft-7-inch-surface-tablet-says-wsj
Looks like those rumors from last summer won't die.
Tommy McClain
It makes too much sense for them not to make one. It also solves the "app problem" considering 99% of what 7" tablets do are related to entertainment. Heck, here are the specs I think are most likely:
7" 1280x800 IPS screen w/ 5 point multi touch
Qualcomm Snapdragon 600 SoC
2GB DDR3L RAM
32GB storage (~16GB usable)
Rear 5MP 1080p camera/Front 2MP 1080p camera
microSD card slot
802.11n
Bluetooth 4.0
20Whr battery (10 hr battery life)
~500grams
Windows 8.1
November 2013
$299
2014 model:
7" 1920x1200 IPS screen, 10 point multi-touch, Wacom stylus support
4GB DDR3L
Next-gen 64-bit Qualcomm SoC
802.11ac
USB 3.0 port
Still $299
These specs write themselves.