Tom Warren of The Verge has dusted off the old Xbox Surface rumor by claiming Microsoft is working on its own 7-inch gaming tablet to compete with the iPad mini and other portable gaming consoles. Warren said "multiple sources familiar with plans within Redmond" have confirmed earlier leaked specs were accurate, and the Xbox Surface will run a custom Windows kernel. The new device will also feature a custom ARM processor and high-bandwidth RAM suited for playing games.

According to Warren's sources, Microsoft will develop the Xbox Surface in-house while any future "Xbox 720" console will be handled by outside 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."

Apple sold three million fourth generation iPads and iPad minis in just three days since the launch of the two devices. Apple's CEO Tim Cook said Apple "set a new launch weekend record and practically sold out of iPad minis." Cook also noted Apple is working hard to build more iPad minis to "meet the incredible demand."

Apple also announced that the iPad mini with Wi-Fi + Cellular and fourth generation iPad with Wi-Fi + Cellular will be available in the US on AT&T, Sprint and Verizon in a "few weeks". The iPad mini will cost $459 for the 16GB model, $559 for the 32GB model and $659 for the 64GB model. The revamped iPad 4 will cost $629 for the 16GB model, $729 for the 32GB model and $829 for the 64GB model. The iPad 2 is currently available for $399 for the 16GB Wi-Fi model and $529 for the 16GB Wi-Fi + 3G model.

Not surprisingly Apple's first batch of iPad mini and new iPad models have sold out. Anyone who hasn't already pre-ordered will not receive their tablet on launch day November 2. In fact, ordering an iPad mini on the Apple Store online means a wait of two weeks until the device is available to ship.

The A6X processor iPad with Retina display is also delayed, with shipping times listed at one week. Overall, it took somewhat longer for delivery times to slip when compared to some other Apple device pre-orders including the iPhone 5. Units of Apple's latest smartphone were sold out within hours, resulting in delivery times increasing to weeks on the first day.

Many Apple fans were shocked by the $329 iPad mini price tag. Mostly because analysts predicted Apple would price the new tablet around $250 to $300 in order to compete with the Amazon Kindle Fire HD and Google Nexus 7. Phil Schiller defended the $329 price claiming shoppers will pay a little more for quality.

"The iPad is far and away the most successful product in its category. The most affordable product we've made so far was $399 and people were choosing that over those devices," Schiller told Reuters

But why did Apple really price the iPad mini higher than all the other 7-inch Android tablets on the market? According to the DigiTimes, the markup had nothing to do with "quality", but had to do with problems manufacturing the touch screen.