Microsoft is believed to be working away on a new version of Windows specifically for low-power devices that run on processors made by ARM Holdings plc.
ARM processors are typically found in tablet computers and high-powered smartphones, like the Samsung Nexus S.
The new version of Windows may debut at the Consumer Electronics Show in Nevada in January where Microsoft is also tipped to be presenting tablet computers running Windows 8.
The idea is to make the powerful Windows operating system more modular and slimmed down to function on next-generation devices, like smartphones and tablet computers.
According to the Wall Street Journal Microsoft has been working with ARM on the project for some time.
