The tablet race is running white hot with Microsoft now reportedly working on a project to counter Apple’s iPad Mini.

The 7-inch Surface Mini is expected to go head-to-head with the iPad Mini in an attempt to corner even more of the tablet market.

Instead of being a smaller version of the Surface RT or Pro, the Surface Mini is rumoured to be dedicated specifically to creating a mobile gaming experience for Xbox.

The Mini isn’t expected to run a full version of Windows 8, but instead will run a custom Windows kernel, where some tablet functions are supported, but primarily with the focus on gaming.

So where does all this come from? The main source is a website called The Verge, who claims to be in contact with “multiple sources within Redmond” that are in the loop. Based on these people, and a report that was leaked in June, The Verge confidently states that the Surface Mini will be all about gaming. Specifications are said to include an ARM-based Texas Instruments processor with 288MB of RLDRAM 2 and a resolution of 1280 x 720.

Can we trust this?

Well, like anything on the internet it’s very easy to fabricate stories and make up rumours. The point that lends this one some credence is that the leaked document mentioned Rick Gutierrez, who works on Microsoft’s research team, and has worked on the Kinect for Windows SDK and the Windows Embedded Compact team in the past.

There has been no comment from Microsoft on the rumours.

The full Surface RT and Pro has a lukewarm debut date of December, at Advanced Computers. In the meantime, we have the Apple iPad 3 and Nexus 7 available right now to tide you over!