ARM Deal Could Extend Microsoft's Reach

Microsoft today extended and expanded its relationship with ARM with a new licensing agreement giving it intimate access to the processor architecture for the first time. The two companies were vague about the intent behind the deal, and while the possibility of Microsoft getting into the chip business seemed remote, there was plenty of speculation about ARM-based tablets or other devices running Windows Phone OS or a ported version of Windows, or perhaps some new guts for the Xbox.