Microsoft Demos Windows Phone 7.8 New Start Screen [VIDEO]

Last week, Microsoft Corporation (NASDAQ:MSFT) introduced a new smartphone and software upgrade that’s set to arrive in stores this fall.  Unfortunately, current Windows phone users will be left out in the dark as Microsoft won’t allow them to upgrade their phones to Windows 8.  The good news is that for those who won’t be eligible for a new phone or upgrade due to contract obligations, Microsoft will allow a minor 7.8 software upgrade for select phones.

The new upgrades include a new start screen with resizable tiles you can customize as larger or smaller. There will also be an array of new mobile applications in the update including Draw Something, Audible, and Words With Friends. You can check out the video for it below.

The new upgrades are hardly impressive but they released as a consolation prize to current Windows Phone owners who’ve patiently waiting for new upgrades. While it’s the thought that counts, I highly doubt this minimal improvement will impress Windows phone users.

This could potentially be one of the worst moves this company has ever made. Even Apple allows customers with older phones to upgrade to the latest software. Upgrades are significant in the smartphone market. It’s cheaper and easier to upgrade an older phone model to the latest software than it is to buy a brand new phone every three or six months to stay in the loop. Apple and Google Inc (NASDAQ:GOOG) are Microsoft’s top competitors and these two companies know exactly what it takes to win over the smartphone market. I highly doubt when the contracts run out for these Windows phone users, they’ll be the first to scramble in line for  Windows Phone 8, especially if they can easily obtain the new Samsung Galaxy III S from Sprint or patiently wait for iPhone 5’s arrival this fall.

 Image Credits: Engadget