There's been a long standing rumor that Apple would launch an "iWatch", can't help but feel this is a late reaction to that - either real to try to not be left behind once again, of fake to create more marketing buzz or even merely stock market buzz, or it could be just in the imagination of journalists.
Anyway, Microsoft is more than smart enough not to risk announcing anything till Apple goes first.
I've not worn a watch in the last few decades. Let alone a bulky one that includes touch screens etc. My phone gives me the time very well. Also, I'm extremely unlikely to go back to wearing a watch ever again as I simply cannot see what any software on any watch could do better than the same software on my iPhone already can. There are obvious hardware human-computer interfaces that could be built on a watch where a phone could not (think about continuous pulse rate monitoring and even more medical stuff), but I value some privacy, so there is a line to draw to where I let the software crafters come.
