Microsoft’s Build Developer Conference is scheduled for June 26-28 and as the date approaches, more rumors are beginning to “surface” about what Microsoft might have in store. Inside sources told DigiTimes that Microsoft may be looking to unveil a next-generation Surface tablet at the three-day San Francisco event noting also that the conglomerate has already shipped somewhere in the neighborhood of 1-1.5 million units to Intel, the software company responsible for the Surface’s processor.

Adding to the intrigue was The Verge, which noted that just preceding last year’s event, yet another rumor emerged only this time about an Xbox Surface. This may hold some credence as Xbox and Surface development teams have allegedly been working closely on a project that’s still under wraps.

There’s no word on specs concerning the next-gen tablet at this point, though it will supposedly feature 7-to 9-inch displays which is respectively smaller than the current 10-incher.

The Build Developer Conference’s main purpose is to showcase Windows 8.1 , the upgrade to its current operating system. Though nothing has been confirmed about the OS, it’s likely we’ll see a mobile version for the Surface devices. Only a build is expected to be displayed while Microsoft continues to iron out any kinks.

The Verge also points out that Microsoft has, as of yet, failed to make good on its hint at a Surface Phone though they’re likely still weighing the pros and cons of its smartphone OS, Windows Phone 8. Also look for the possible inclusion of a smart watch by the Washington-based devices and services giant. The Wall Street Journal published an article back in April citing unnamed sources that Microsoft “has requested 1.5-inch displays from component manufacturers.”

Apparently “Microsoft’s Bill Buxton recently outlined the 37-year history of smartwatches at a talk during the company’s TechFest research event.” After all, why else would anyone spend the time to drone on about almost four decades of the little clicks and ticks that come from one’s wrist if they weren’t planning on doing something about it?

We’d like to hear from avid tablet users out there. What do you all think about the Surface? Is it worth the hefty price tag? Is it comparable to the likes of the iPad, Kindle Fire, or Galaxy Tab series? Let us know your thoughts, questions, or concerns in the comments section below.