According to the annual form 10-K that Microsoft just filed with the Securities and Exchange commission, showing a revenue report of $853 million for their fall-released tablet product. These numbers represent the revenue for al of their Surface tablet products from their initial launch this past fall up until the end of Microsoft’s fiscal year, which was June 30th.

Microsoft did not disclose the full number of units sold, but as the base price of the Surface RT was $500 (their most heavily advertised product), based on the revenue stream we can surmise that somewhere in the neighborhood of 1.7 million units were sold at the close of the fiscal year.

Additionally in their filing, Microsoft reported an $898 million increase in advertising costs, primarily associated with Windows 8 and their Surface product line. This means that Surface sales failed to even clear the cost of their own advertising, let alone their production costs.

The total revenue for the Surface line accounts for roughly 4.4% of the total revenue for the Windows division of Microsoft, which came in at $19.2 billion for the fiscal year.

It seems that the windows curse continues, with Windows 8 and it’s associated products showing lackluster sales and reviews. Let’s hold out for Windows 9, shall we?

Source: GeekWire

Microsoft has opened a new London Studio to focus on developing things for Windows 8 tablets. The OS will be released on October 26th for everyone; it’s already available for MSDN/Technet subscribers.

 Lee Schuneman, who was the former production director at Rare, will take the helm at the studio and will work under Microsoft corporate VP of interactive entertainment Phil Harrison. (via MCV)

“I’m hugely excited by this new venture. Adding a fourth UK-based studio to the incredible roster of talent already in place not only increases our in-region studio presence, but will allow Microsoft Studios to explore the many creative and business opportunities that developing new games and entertainment experiences on Windows 8 tablet devices and platforms will afford,” Schuneman said.

It’s nice to see Microsoft open new studios in London, and it remains to be seen if the output will be beneficial for the company.

Tell us what you think in the comments section below.

At a press event in California, Microsoft unveiled a new brand of tablet PCs, running on Windows 8 and it will be available just after the OS launches. The tablet is conceived, designed and engineered entirely by Microsoft employees and is created to seamlessly transition between consumption and creation, without compromise.

That’s what Microsoft says, obviously. Steve Ballmer CEO of the company came to demo the unit on stage, and revealed all the features and specifications as well. The tablet features an USB port along with a HDMI port, making it a very attractive device compared to Apple’s new iPad.

• Software takes center stage: Surface sports a full-sized USB port and a 16:9 aspect ratio – the industry standard for HD. It has edges angled at 22 degrees, a natural position for the PC at rest or in active use, letting the hardware fade into the background and the software stand out.

• VaporMg: The casing of Surface is created using a unique approach called VaporMg (pronounced Vapor-Mag), a combination of material selection and process to mold metal and deposit particles that creates a finish akin to a luxury watch. Starting with magnesium, parts can be molded as thin as .65 mm, thinner than the typical credit card, to create a product that is thin, light and rigid/strong.

• Integrated Kickstand: The unique VaporMg approach also enables a built-in kickstand that lets you transition Surface from active use to passive consumption – watching a movie or even using the HD front- or rear-facing video cameras. The kickstand is there when needed, and disappears when not in use, with no extra weight or thickness.

• Touch Cover: The 3 mm Touch Cover represents a step forward in human-computer interface. Using a unique pressure-sensitive technology, Touch Cover senses keystrokes as gestures, enabling you to touch type significantly faster than with an on-screen keyboard. It will be available in a selection of vibrant colors. Touch Cover clicks into Surface via a built-in magnetic connector, forming a natural spine like you find on a book, and works as a protective cover. You can also click in a 5 mm-thin Type Cover that adds moving keys for a more traditional typing feel.

You can find out more details over here. Meanwhile check out the screenshots and video below.