Microsoft announced a number of significant products at the CES. One of its major thrust areas is Windows Phone 7 and apps for it to make the OS more popular and eventually capture a major market share. To this end, it is rumored that Microsoft is working on an app for Windows Phone 7 platform that is similar to Facetime and might be even better than Skype.

More likely than not, if and when it is released, it will be bundled with Microsoft Live Services to enable common usage on many devices and platforms. Microsoft is working hard to enhance the feature sets and apps on the Windows Phone and promote it. This app may require a front facing camera on the next-gen WP8. That just might give Microsoft a very minor edge.