It seems Microsoft is considering a move into the wearable space. In this case it looks like Microsoft may be prepping a Google Glass competitor. It also looks like they may not be stopping at eyewear though. Further chatter here suggests the tech giant has also been testing other devices as well.
What we are seeing comes by way of the Wall Street Journal and "people familiar with the matter." The report mentions that Microsoft is "testing prototypes for Web-connected eyewear similar to Google Glass." There was mention of how Microsoft has already begun looking towards Asia for components that would be required for the eyewear -- including a camera.
As for those other devices. The talk mentioned how Microsoft is keeping close tabs on this space. Basically, the wearable space as a whole. While it appears there may not be anything firm in the works, the report did mention fitness bracelets and wristwatches. This source also mentioned that Microsoft is "determined to take the lead in hardware manufacturing to make sure the company won't miss out on the opportunities in the wearable gadget market."
Our take on this, given the size of Microsoft it would seem a little stranger if they were not paying attention to the wearable space and at least considering some options and working on some prototype models. To that point, this same source also made it clear that this device may not ever make it to final production.
Time will tell whether or not Microsoft moves forward with any of these plans and in the meantime, we are still looking towards Google with Glass. They have been rolling out the XE updates month-by-month and while each has been steadily improving the overall experience, we are still looking towards the rumors for the possibility of a public launch. With that, the last we have seen was that Google was working on a consumer version for release in 2014.