Not a big surprise, but still interesting. Does this mean that the
stylus is dead?

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Microsoft talks Windows Phone 7 Series development ahead of GDC:
Silverlight, XNA, and no backward compatibility -- Engadget
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http://www.engadget.com/2010/03/04/microsoft-talks-windows-phone-7-series-development-ahead-of-gdc/

or

http://preview.tinyurl.com/y9sh7vx

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"One final note at today`s event is that Microsoft has now officially
confirmed for the first time that 7 represents a clean break from
Windows Mobile as we know it today; existing apps won`t be compatible.
Though that`s likely to be a pain for existing owners with specialized
apps who are looking to stay in the Microsoft ecosystem, Windows Phone
7 Series itself is a very different beast than the operating system it
replaces -- it feels different, seeks a different demographic, and
symbolically represents a very important clean-slate departure for a
company that had lost its way in the mobile space. "
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