According to some rumours started by the Inquirer today (ignore their linked ‘video proof’ as it’s clearly a joke), Microsoft is in the final stages of building a phone – the first of its own brand – that will rely on performance to drive sales. They’re allegedly developing a phone that uses one of NVIDIA’s Tegra processors. This processor (likely the APX 2500 chip) would theoretically give the Microsoft device 720p video playback and advanced 3D visuals that no other smartphone on the market has, to date.

More about the Microsoft smartphone rumours here