According to the Wall Street Journal, Redmond is currently sourcing components for its Windows watch, including 1.5-inch displays. However, it is still not clear whether the device will ever hit the market. Microsoft has a long tradition of working on various designs, some of which never enter production.
Sadly though, Microsoft isn’t very good at this sort of thing. The Kin phone was a disaster and its Surface tablets aren’t doing very well, either. Hopefully Vole has learned a few lessons along the way.