Microsoft has long been rumored to be preparing 7- and 8-inch Windows devices, and the company has all but confirmed its plans today. Speaking on an investor call, Microsoft CFO Peter Klein revealed Microsoft is working closely with OEMs to produce "a new suite of small touch devices powered by Windows." Klein says the devices will have "competitive price points," thanks in part to Microsoft's latest OEM offerings designed for the smaller devices. Microsoft says the devices "will be available in the coming months."

Microsoft recently revised its Windows 8 tablets specifications to allow OEMs to create Windows 8 tablets with a minimum resolution of 1024 x 768. The software maker is expected to deliver a Windows 8.1 upgrade later this year to improve support for this resolution and Windows 8-style applications. While Microsoft says smaller Windows-powered devices are due in the coming months, it's possible that OEMs are planning to release these devise with Windows 8 installed ahead of the Windows 8.1 release.

A 7-inch Surface is reportedly planned for release as part of a new lineup of Microsoft tablets, suggesting that Microsoft isn't just working with its OEMs on smaller devices. The company is also said to be testing prototypes of a smartwatch with a screen size of just 1.5-inches. We've reached out to Microsoft to clarify what type of "small touch devices" will be made available and we'll update you accordingly.

Update: A Microsoft spokesperson says the company has "nothing more to share at this time" on its small device plans.