Microsoft reportedly prototyping wrist-worn device with 1.5-inch touch-enabled display.

A "reliable source" has told The Verge that Microsoft's Xbox team is testing a wrist-worn smartwatch. The company has reportedly been working on the technology for over a year.

Last year, it was reported that Microsoft was working on a "Joule" heart rate monitor to be used as a peripheral for new Kinect-enabled exercise technology. The Verge now understands that Microsoft has shifted its focus to the smartwatch.

The watch is believed to be in prototype phase, currently in development by the same team that worked on Xbox accessories and Kinect. The device reportedly features removable bands attached to a 1.5-inch touch-enabled display.

The Wall Street Journal was first to report on the story, citing supply chain sources with the information.

A Microsoft representative told GameSpot, "We do not comment on rumors or speculation. We are always thinking about what is next for our platform, but we don’t have anything further to share at this time."

If Microsoft is in fact working on a smartwatch, it won't be the first time the company has done so. Microsoft launched a range of SPOT smartwatches in 2004 that used radio signals to pull in news, weather forecasts, and stock quotes. These devices were discontinued in 2008.

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