Bloomberg reported today that Microsoft is busy porting Windows to the ARM-based chips that dominate the smartphone and tablet market. If true, that would likely mean no possibility of future WP7 tablets. Which sounds unlikely! Here's a better bet. Updated
Mary Jo Foley breaks down Microsoft's likeliest ARM scenario, and it doesn't involve full Windows. Instead, Microsoft's clearest path to ARM is Windows CE.
Microsoft's about to release Windows Embedded Compact 7 to manufacturing, and as a platform it makes way more sense in the tablet environment than full Windows. It also gives Microsoft a chance to port up a version of Windows Phone (which seems ripe for the tablet environment), with Silverlight providing cross-platform opportunities.
Either way, the only thing that's crystal clear is that Microsoft is going to be pushing tablets hard at CES. Much like, well, last year. But maybe Windows CE will give them a better chance than Windows 7 has to date.