Microsoft is back in the hardware game. This time they are working to demo a phone-PC and word on the street is that this might not be all that bad.

Microsoft showed a prototype of the FonePlus yesterday, a concept phone that doubles as a full PC when connected to a display and keyboard. This device ran Windows CE, not a full-blown desktop OS, but don’t underestimate the potential power of CE here. Additionally, if you’ve been following the mobile chip market recently, you might have heard the recurring theme of “Texas Instruments”. What…not Intel, er, Marvell?

Although I have zero info on the concept device, the new TI OMAP 3 mobile handset chips could really fit the need here, or at least show us the path as they tout features you’d never expect… Source: jkontherun.blogs.com