Microsoft is reportedly working on an interesting new portable device, codenamed Courier, which could compete with current and upcoming tablets – including Apple's rumored "Media Pad." Gizmodo released an exclusive report today, showing off a tablet prototype with two 7-inch displays sitting side-by-side in booklet fashion, in addition to sporting a built-in camera on the back and Wi-Fi.

The user interface seems quite intriguing as well. In a brief video demonstration the Courier appears to mix multi-touch elements from the iPhone with traditional stylus-based handwriting and drawing and Zune graphical elements. The device is reportedly in a "late prototype" stage and being developed by a group within Microsoft's Entertainment & Devices division – also responsible for the Xbox, Zune and Windows Mobile.

Gizmodo promises additional information in the coming days. For now, you can check out the Courier's demo video after the jump.