Well guys here is an update to anyone who might be experiencing the same thing. I did an advanced exchange with microsoft so they sent me a replacement and once I receive it then I send back my defective unit. Good news is that my microphone was indeed borked and the new surface microphone does not have any static issue that I have experienced so far. I have to give props to microsoft customer support because they were really helpful and really fast sending the replacement. Also, I didn't have to talk to a robot who just reads scripted sentences, they acted like real people wanting to help. Anyway, just thought I would give an update and say thanks to microsoft for such an awesome product and awesome support.