Microsoft shouldn't be trying to show they're "in the game" - they should be rewriting the game. Apple didn't release the iPad or the iPod to be in a game. Both were widely derided (even here on HN with the iPad) but resulted in an entirely new "game" others were left to catch up with.
Microsoft doesn't need to play catchup - it needs to start inventing the future again (Kinect hints at what they can pull off).
The Windows Embedded version has been (is?) available for ARM, MIPS, Hitachi SH and x86.
There have been some embedded and stripped Windows boxes used for various purposes. Thin clients and storage controllers, for instance.
The Windows x86 application market hasn't been interested in the other architectures. This because getting an installed base from x86 to another architecture is No Small Effort, both for Microsoft, and for all of the other organizations that supply or use Windows software. The FX!32 translation services were unsuccessful in encouraging folks to use Windows applications on Alpha, for instance. And if you don't get the installed base moved to your new target, you then get to own the costs of fragmentation and of running what you've brought out.
Beyond the references to iOS in the article, I'd also expect this work is in response to Google's Android and HP's WebOS, too. Android establishes the price floor, iOS aims at the revenue (and with a finger-targeted UI), and WebOS is owned by a very large Windows hardware partner.
Interesting times for the Microsoft folks.
Are you sure about that? If I want to run old versions of IE, MS solution is to run a VM, probably because it's cheaper for them. At what point will it become more profitable for them to just tell people to use VMs for 20 year old software? Knowing that only businesses would need those.
(works for company only now rolling-out Windows7 as a beta for a small group of developers)
I still don't understand why they've been so apathetic to using the Windows Phone 7 OS on other types of devices. Many reviews say that the interface would scale well to other device types, and it already runs on ARM.
My hope is that they're being disingenuous, and in fact are doing exactly this.