Microsoft is working on a first-party Windows Phone device

Last week we received a tip from a fairly close source that Microsoft would likely be introducing its own first-party Windows Phone device. We decided not to report on this one, because it seemed to make no sense. Why would Microsoft release a first-party phone that will be in direct competition with the Windows Phone 8 devices that its partners will be selling later this month?

Well, the folks over at wpcentral are hearing similar rumblings, as a source over there has let them know that Microsoft does indeed have its own Windows Phone device in the testing stages. BGR is reporting something similar, although that publication has been less than reliable on a number of fronts as it pertains to rumor and speculation. Still, it's our belief that each publication has a different, unique source regarding this information, and as far as Gear Live goes, ours comes directly from within Microsoft.

We didn't hear about any sort of timetable for the announcement or release, but Microsoft does have an event on October 25th to get Windows 8 and Windows Phone 8 news out to the masses, and it would be as good a spot as any to show off some new hardware. It would be a similar move to what Apple does these days with the iPhone, where it announces the device alongside pricing, and then announces that it will be available the following week.