Surface has now lost $1.2B – CEO Nadella will unveil new tablets by the time you read this, but will that help stop the bleeding? – The loss of more than $1.2 billion (so far) on its Surface tablet makes Surface an expensive business experiment and that makes tomorrow’s revelations of new hardware concepts an important milestone for the “devices” side of corporate-refashioning strategy. CEO Satya Nadella is expected to have stepped on a New York stage and unveiled one or more new Surface tablets, and outlined his direction for the in-house hardware project birthed by his predecessor, Steve Ballmer. While analysts and observers are split on Surface’s future – some see Nadella’s presentation as a last-chance for Microsoft to revise its tablet strategy, however others believe Microsoft will press forward regardless of the reception given the new devices. It’s a no-brainer that eyes will be on Nadella, who will have to explain how he will push, pull and drag the Surface out of its money-losing ways. Even though Microsoft has been frugal in the details it declares of the Surface’s financial performance, the business has clearly been a money pit. In the last two quarters – the only ones in which Microsoft has explicitly called out revenue and cost of revenue – the tablet line lost $84 million.

Really to bad becuase the surface is great for secure enviroments like offices and schools.