The tablet market saw a new rival today as Microsoft announced its latest innovation -- the "Surface."

The announcement was made Monday at Hollywood's Milk Studios and was shrouded in secrecy, with virtually no details known before the big reveal.

"Today we want to add another piece to that Windows 8 story," said Microsoft CEO Steve Ballmer during the event. "We wanted to give Windows 8 its own companion hardware innovation."

Steven Sinofsky, president of Microsoft's Windows division, called the device a "tablet that's a great PC -- a PC that's a great tablet."

The 10.6-inch tablet is 9.3 mm thick, weighs just under 1.3 pounds and features a magnetic case that doubles as a full multi-touch keyboard.

The device can access all Windows applications, including Xbox, and features a new application for Netflix.

Surface will be available this fall and it’s expected to cost as much as comparable tablets. Its debut is set to coincide with the much-anticipated release of Windows 8, which takes advantage of touch-screen systems and works across laptop computers, tablets and even televisions.

The new tablet marks a major shift for the company, which has traditionally focused on software and has left the design of hardware to others.

Last Thursday Microsoft invited media to the major announcement, but refused to reveal any details other than the time of the event.

Roger McNamee, a technology investor with the private equity firm Elevation Partners, had earlier told the New York Times that if Microsoft unveiled a new tablet, it would have to surpass its competitors and deliver "functionality superior to iPad in a package consumers want to buy."

Microsoft has been making software for tablets since 2002, but it was never a big seller.

Apple is the leader in the tablet world with the iPad capturing 62 per cent market share, followed by Samsung at nine per cent and Amazon at six per cent.

With files from The Associated Press