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WPCentral posted a story that Microsoft has revised their chassis specification for low-end, cost-conscious devices.



During the Microsoft Conference 2011 in Shinagawa Japan, a slide was presented (as seen above) that details the new specifications. 
Tezawaly from the site NanaPho.jp was kind enough to translate the new specifications:

Capacitive Touch Panel- 4 points or over multi-touch
Sensors - A-GPS, Accelometer, Compass, Proximity
Camera -3MP or over
Connector - MicroUSB, 3.5mm jack
Storage - 2GB or over
CPU - ?

We doubt we'll see any such budget phones here in the US, but it is interesting to see Microsoft really try to go after all ends of the market.
  Microsoft revises chassis specifications for low-end phones