It seems Microsoft is going to be designing their own hardware and selling a phone of their very own..
Specs include
600 Mhz processor
Graphics Chip from Nvidia
"The NVIDIA chip Microsoft will be using is the Tegra APX 2500 made for smartphones. The 2500 chip will provide support for: a 600 MHz MPCore Processor, support for a 12 megapixel camera, GeForce ULV support for OpenGL ES 2.0, up to 720p H.264 decoding, and NVIDIA nPower technology that could enable over 10 hours of HD video playback and up to 100 hours of audio."
Scheduled to be announced February 2009
Check this link for all the details...
http://pocketnow.com/index.php?a=por...t=news&id=6289
More detail are here also..
http://www.intomobile.com/2008/11/24...microsoft.html
http://www.theinquirer.net/gb/inquir...t-phone-nvidia