More recent chatter suggests the Microsoft smart watch will be coming from the team behind the Xbox, Kinect and related accessories.

FORBES: Apple Needs More Than Just A Hardware Upgrade

Anybody remember the Microsoft-Timex DataLink watch?

FORBES: Microsoft Learned What Apple's iWatch Must Have To Succeed

Depending on who you believe, perfecting the console could take six to 12 months, which will seem like donkey's years to gamers, but infinity to Sony, which will have to sit back and watch as Microsoft's XBox 360 gnaws into its market share.

FORBES: Magazine Article