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Surface Watch?  Microsoft allegedly testing a ‘translucent aluminum’ smartwatch

Microsoft's prototype smartwatch testing has moved over to its Surface team.  Sources familiar with Microsoft's Surface plans have revealed to The Verge that the company is now prototyping devices directly under …

The Verge Tom Warren

Context & Ripple Effects

Microsoft's 2012 Surface launch established Surface as the company's device brand. Four days before this report, Microsoft confirmed a company-wide realignment whose internal memos emphasized consumerization.

Placing an alleged wrist-device prototype within the Surface team gives that reorganization a concrete hardware test: whether a single consumer-device group can extend the brand beyond tablets.

First-order effects

  • Microsoft's Surface team becomes the apparent home for smartwatch prototyping, concentrating product responsibility under the same organization associated with Surface hardware.
  • The reported prototype gives Surface a potential new device category to evaluate alongside its established tablet effort.

Second-order effects

  • Microsoft's consumer-focused reorganization gains pressure to turn its new device-group structure into products rather than merely an executive reshuffle.
  • Surface branding would have to accommodate a smaller, more personal device if the prototype advances, broadening the team's design and product remit beyond tablets.

Third-order effects

  • If Microsoft continues assigning experimental consumer hardware to Surface, the brand may become the company's umbrella for a wider family of personally used devices rather than a single product line.

The trend: Microsoft's reorganization points toward tighter alignment between its consumer strategy and a centrally managed Surface hardware portfolio.