A tech website called Tom's Hardware claims to have a trusted source inside Microsoft, and they believe that the tech giant will be release the new wearable gadget later this year.
With Apple expected to be releasing a watch this autumn and Android already in the smartwatch business, it's safe to say competition for market share will very soon be hottng up.
Details on what Microsoft's own smartwatch will do and look like are a bit sketchy, but the Tom's Hardware source claims to have inside "knowledge of the development", and he's given some extra bit of information as to what we can expect.
As far as looks go it apparently won't look anything like the smart watches Android showed us at the Google I/O last week. Instead it will appear more like a smartband rather than watch, taking design features from the Nike FuelBand, but making it much slimmer in the process.
This could be a risky move considering the FuelBand was widely regarded as a failure and production of that wearable is soon to be stopped.
It will also have 11 sensors with various fitness gadgets built-in like a heart rate monitor, and just like Android's smartwatch operating system it will be able to sync with your smartphone and presumably your tablet too.
Another feature that makes it different to the current wearable devices on the market is the fact that its display will reportedly be on the inside of your wrist rather than the outside. Microsoft feels that holding your wrist up with your palms facing your face is a more natural way of looking at such a device.
Their source also confirmed reports that the device will be cross platform compatible, so even if you own an Android or Apple smartphone you will still be able to sync the device to your mobile phone.