Microsoft is out with its newest Surface tablet, a machine that is a touch slower and a tad smaller than its current Surface Pro 3.

The new Surface 3, announced Tuesday, is also less expensive and improves battery life by 25 percent, to 10 hours of video playback on a full charge.

Due in stores May 5, the new Surface starts at $499 and also ditches Windows RT for real Windows 8.1. It does not include a stylus but can be used with the SP3 stylus available for purchase separately. The keyboard/cover is also an extra expense.

I have been searching for a small laptop for about a year now. It has to run real Windows applications and have a decent keyboard. Smaller is better, but tablet functionality is not so important to me. I’ve looked at a number of machines and seriously considered a Dell. I need this machine to be inexpensive, since it won’t be a primary tool.

It is hard to say “I’ve decided” when I have yet to touch the Microsoft Surface 3, but having seriously considered the Surface 3 Pro (too expensive) the new, slightly smaller, less-expensive model looks good. An LTE model will release later, but Wi-Fi meets my needs.

The $499 model includes 2GB RAM and a 64GB storage. Doubling RAM and storage adds $100. The Type Cover and Surface PC stylus cost extra, so a fully accessorized Surface 3 looks like $799 out-the-door. More if you want the docking station.

That same $799 is the starting price for the entry-level Surface 3 Pro, which sports a 12-inch screen compared to the 10.8-inch Surface 3. Both are HD resolution and both upgrade to Windows 10 for free when the new OS ships.

Of course, everything will upgrade to Win10 for free, at least machines capable of running the new Windows.

My former colleague, Mark Hachman, details the Surface 3 tech specs  at PC World.

Some customers will have a hard time deciding whether the Surface 3’s performance will be up to their tasks. Here’s what Microsoft has to say:

“If you do very demanding work – things like editing and rendering video or complex 3D modelling – then the power and performance of a Surface Pro 3 is for you,” writes Microsoft VP Panos Panay on the Surface blog announcing the new product. writes  If the majority of your work is less intense – working in Office, writing, using the Internet (using IE, Chrome, or Firefox!), and casual games and entertainment, then you’ll find that Surface 3 delivers everything you need.

“If the majority of your work is less intense – working in Office, writing, using the Internet (using IE, Chrome, or Firefox!), and casual games and entertainment, then you’ll find that Surface 3 delivers everything you need,” Panay adds.

Decisions, decisions, thankfully while preorders have started, the new Surface will also be in the Microsoft’s retail stores starting April 1, so I will get to compare and decide soon.

Image courtesy Microsoft Corp.