Is Microsoft set to take on the iMac? Invites arrive for mysterious event rumoured to see launch of all in one Surface desktop PC

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Microsoft's Surface tablet has become a hit, with users praising its portability and ability to bring a 'real' computer to a touchscreen.

Now, Microsoft hopes it can do the same for desktop PCs.

The firm is rumoured to be putting the finishing touches to an all in one desktop PC - and today sent out invites for an event in New York on the 26th October where it is expected to be unveiled. 

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Microsoft's Surface brand could soon be extended to an all in one desktop PC codenamed Cardinal. According to ZDnet, it will come in three screen sizes, 21, 24 ,or 27 inch and will have a 'modern and elegant' design.

According to Mary Jo Folet at ZDnet, the new device is codenamed Cardinal, and will come in three sizes - with a 21, 24 ,or 27 inch screen. 

'I've heard that Surface Cardinal could be positioned as a product that can turn your desk into 'a studio',' she wrote.

The device is expected to be unveiled at an also rumoured late October event where the firm's tablets could also get an upgrade.

According to Windows Central, it will have a 'modern and elegant' design.

The device is expected to be unveiled at an also rumoured late October event where the firm's tablets could also get an upgrade.

Microsoft also recently revealed it will launch a mixed reality version of Windows next year.

The move will bring a 3D holographic version of the platform to Windows 10 users who own a virtual reality headset.

Announcing its plans at the Intel Developer Forum in San Francisco yesterday, Microsoft said user interface will be available to run on mainstream PCs. 

Lenovo already makes a 27inch tablet/PC hybrid, called to Yoga 900

The new Holographic shell desktop UI will enable users to run Windows 10 through a VR headset hooked up to a standard PC, opening up the experience beyond those with high end gaming machines. 

Writing in a blog post, Microsoft's executive vice president for Windows, Terry Myerson, said: 'Next year, we will be releasing an update to Windows 10, which will enable mainstream PCs to run the Windows Holographic shell and associated mixed reality and universal Windows applications.

'The Windows Holographic shell enables an entirely new experience for multi-tasking in mixed reality, blending 2D and 3D apps at the same time, while supporting a broad range of 6 degrees of freedom devices.'

Microsoft is working with chip-maker Intel on a specification for mixed reality PCs and head mounted displays, in an effort to open up the market and its platform.

Microsoft has announced it will launch a new Holographic shell desktop UI for Windows 10, which will enable users to run Windows through a VR headset hooked up to a standard PC

A video demonstrates how the interface will look running at 90 frames per second, triple that of most HD televisions. It shows a woman wearing a headset running a mix of 2D and 3D apps as she checks email, books flights, navigates a diary and takes a virtual tour (pictured)

'Our shared goal is to enable our hardware partners to build a broad range of devices for the mainstream consumer and business markets,' wrote Myerson.

A promotional video demonstrates how the interface will look, running at 90 frames per second, triple that of most HD televisions.

It shows a woman wearing a headset in a virtual room running a mix of 2D and 3D apps as she checks email, books flights, navigates a diary and takes a virtual tour of the Pantheon in Rome.

The virtual dog in Windows holographic shell UI bears a close resemblance to Rover, the assistant character which made appearances in earlier Microsoft software

Veteran Windows users will also notice the similarity between the virtual dog and Rover, an assistant character in Microsoft's less than successful Bob software and who later made an appearance in Windows XP.

According to Microsoft, using a 'six degrees of freedom' headset, the interface can be manipulated using a point and click Wii-type controller.

The headset in the video is unbranded (still pictured) but it could well be the Washington tech giant's mixed reality Hololens, or Facebook's Oculus Rift

The headset in the video is unbranded but it could well be the Washington tech giant's mixed reality Hololens, or Facebook's Oculus Rift – which is set to launch in the UK next month – and which runs on Windows 10 devices. 

While Hololens began shipping to developers in March at $3,000 a piece, but it remains unclear when a consumer version of the headsets could launch.