Phones are due out by the 2010 holiday season.
It's called the Windows Phone 7 series and, despite the name, it's nothing like Windows. Sure, there's mobile versions of Office, Outlook and Internet Explorer. But if Windows was more like this phone, it wouldn't have image and reputation problems.
No, this phone is more like Zune HD, which is smooth and sleek. There's room for games and music and video. There's also XBox Live integration - you can tinker with your avatar on your phone. Plus, you can update social networks like Facebook directly from your phone. No need to wait for apps to be developed (with apologies to my husband, an iPhone app developer).
But Bing is special. Bing gets its own dedicated hardware button.
Microsoft has created a series of videos demonstrating the new Windows Phones. You can also learn more by going to WindowsPhone7Series.com. I've embedded one below, which shows off its features. Watch it and then tell us what you think of Microsoft's announcement by leaving a comment below.