Rumors indicate Microsoft is currently developing prototypes for a new smartwatch, complete with a 1.5-inch touchscreen.

Microsoft is believed to have been working on its smartwatch for well over a year. Sources speaking with the Verge the teams behind the Kinect sensor and other Xbox accessories are currently responsible for the prototyping.

Initially, the Wall Street Journal reported on Microsoft's plans, as the paper had discovered the company's supply chain plans for 1.5-inch screens to be created. This would be the display, which would fit between removable customizable bands. The early reports also indicated the prototype would use the same magnetic power source as the Surface tablet, as it allows for bother power and data transmission.

Microsoft already attempted a smartwatch in the early 2000s, but the short-lived SPOT watches were discontinued in 2008. Microsoft is hardly the first company rumored to be in the smartwatch game, but now it appears the race for first is much more crowded than before.