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Microsoft adds new twists to Surface tablet

SAN FRANCISCO (MarketWatch) -- Microsoft Corp. decided to go it alone when it came to developing a tablet and so far, its Surface tablet looks like it merits some of the recent hype.

The software giant has added some new, innovative twists to the Surface, including a built-in kick stand and keyboard that also acts as a cover for the 10.6" screen. These apparent improvements by Microsoft (MSFT) , have yet to emerge in tablets deigned around Google Inc.'s (GOOG) Android software.

Al Hilwa, an analyst with IDC, called it a "Swiss Army knife of a tablet" and said that he believed Microsoft was forecasting where the PC is headed. "I like that they put a stake in the ground in terms of how they imagine the future of the PC," he added in an email. The move by Microsoft to try and set the direction of hardware was a bold departure in the PC space, where partners such as chip maker Intel Corp. (INTC) typically seek to establish a direction for future devices with prototype designs.

Two models of the Surface will be available, one designed around Intel chips and the other designed to run chips using ARM Holdings Ltd (ARMH) designs, which have been preferred in smartphones and tablets because they consume less power. It also appears that ARM-based designs enable thinner devices.

The ARM-based Surface will be 9.3 millimeters thin, compared to the thicker Intel-based tablet which is expected to be 13.5 millimeters. Read more about Microsoft's Surface.

Now, the big question is whether or not it will price at or below Apple's (AAPL) aggressive pricing of its iPad, which still is the dominant tablet on the market, and starts at $499 for the newest models. Microsoft said it will make the Surface available in the fall and it's clearly hoping to get the kind of consumer hype and lines at its retail stores, which it has also been slowly and steadily building across the U.S. It has about 20 stores, and four more "coming soon" in cities such as Boston and White Plains, N.Y.

A battle royal of the tablets may finally be in the making.