The device will come with free one-year subscription to Microsoft Office 365 Personal.
Microsoft has introduced its next generation tablet, dubbed Surface 3, which is the thinnest and lightest tablet by the company.
Unlike its predecessor, which ran on a scaled back version of Windows "RT", the new tablet will run on the full version of Windows, allowing the system to run Windows apps, which the company highlighted will make it ideal for business and school use.
The tablet is powered by Intel quad-core Atom x7 processor, and features 10.8-inch ClearType HD multi-touch display. The base model will come with 64GB of storage and a hi-end version of the tablet will feature 128GB of memory.
For high speed connectivity, the company has also launched the 4G LTE version of the tablet, which is designed to help users complete their tasks faster.
The tablet will come with a Surface Pen, sold separately, along with free one-year subscription of Microsoft Office 365 Personal.
Microsoft is also offering the Surface 3 Type Cover, Surface 3 Docking Station, and Surface Pen in different colours to suit users taste.
The company has already started taking pre order for the device which costs $499 for the basic model.
Microsoft Surface corporate vice president Panos Panay said: "Surface 3 brings what customers love about Surface Pro 3 to more people, delivering the premium design and productivity of Surface in a more affordable device.
"We’ve taken everything we learned making Surface Pro 3 and poured that innovation into this newest Surface. It’s beautiful, versatile, powerful and productive, and our customers are going to love what it lets them do."