Two years ago Apple created the tablet computer market with its iPad and the company is now the market leader selling more than 67 million units of the product since its launch.
Now, Microsoft wants a share of the action as sales of tablet PCs are predicted to triple in the next two years.
Overnight in Los Angeles Microsoft launched the Surface.
It has a 27-centimetre 16-by-9 hi- definition touchscreen, which will be powered by the new Windows 8 touch operating system on the premium version.
It also features a cover which when opened acts as a keyboard. It also has a flip-out rear kick stand to prop it up like a picture frame.
Microsoft says it has designed the Surface to look and feel like a book weighing at 676 grams.
There is no release date or pricing just yet. But given Microsoft's mixed history, its successful XBox gaming console compared to its failed Zune music player will its latest tech gadget be a success?