Rumours from 'The Wall Street Journal' are suggesting that Microsoft are currently making their own Windows Phone. The phone is a plan B, just encase Windows Phone 8 doesn't have the response Windows are expecting. Otherwise, this phone will be forgotten and dissolve into the back pages of the Microsoft Hardware sketch book. If the phone is launched it is expected to have a screen size of between 4-5-inches and... erm... that is all we know.
In all honestly, it would be cool if Microsoft made a phone however if they do, I think it just shows that Microsoft has trust issues with HTC, Samsung and Nokia. This will upset the hardware manufacturers and probably prevent Samsung from making a Windows Phone ever again.
