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Windows Phone 7

Work towards a major update may have began as early as 2004 under the codename "Photon" Due to delays, the project was cancelled and the Windows Mobile group reorganized in 2008. Microsoft then completely started over to create a new mobile operating system, which became known as Windows Phone starting in 2009The product was initially intended to be released during 2009, but several delays prompted Microsoft to develop Windows Mobile 6.5 as an interim release.

Because of the change in direction, Windows Phone 7 was developed in an accelerated timeframe. Existing Windows Mobile applications do not run on Windows Phone 7. Larry Lieberman, senior product manager for Microsoft’s Mobile Developer Experience, told eWeek: "If we’d had more time and resources, we may have been able to do something in terms of backward compatibility.He stated that Microsoft was attempting to look at the mobile phone market in a new way, with the in mind as well as the enterprise network.Terry Myerson, corporate VP of Windows Phone engineering had this to say about backwards compatibility: "With the move to capacitive touch screens, away from the stylus, and the moves to some of the hardware choices we made for the Windows Phone 7 experience, we had to break application compatibility with Windows Mobile 6.5."