This move allegedly shows how serious Microsoft is about the smartwatch form factor and that it is moving it towards completion. Earlier, the smartwatch was developed by the Xbox accessory team along with the Joule heart rate monitor.
We have previously heard that Microsoft has placed orders for 1.5-inch displays and will be using the Surface magnetic connector in the possible upcoming smartwatch.
The Microsoft smartwatch will come with removable wrist bands and color options for them will include blue, red, yellow, black, white, and grey colors. What’s most interesting is that the actual watches are made out of Oxynitride Aluminum, an expensive material described as "translucent aluminum" that is also three times harder than glass.
Right now, reports claim the Microsoft smartwatch is using a modified Windows 8 and features 6 gigs of internal storage and LTE connectivity to connect it to the cloud. The watch is said to also serve notifications and allow access to music controls.
source: The Verge, AmongTech