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Ballmer hints at new Windows handsets for Xmas

Microsoft top dog Steve Ballmer has let slip that a second generation of Windows Phone 7-powered smart phones will be available by Christmas this year.

Bellowing at a bunch of up-and-coming tech titans at Microsoft's Imagine Cup 2011 - an event which attempts to find the best and the brightest teen geeks and turn them to the dark side - Ballmer said of Windows Phone: "You know, a year ago we didn't have a phone in the market. Now, we're charging forward with Nokia. We have the second generation of our phones coming out this Christmas, and people are starting to do things they had never imagined before. I love the applications that I saw for the Windows Phone from the people in this room, and the way you're pushing that device, and using that device. It was really exciting for me."

Of the projects created by attendees at the Microsoft bash, nearly half were based on Windows Phone.

You can read the full transcript of Blammer's speech, as well as those offered by a host of other Microsofties, right here.