A report in The Wall Street Journal has claimed Microsoft is on the verge of creating a smaller, leaner operating system to succeed CE. The report claimed that Microsoft will, tomorrow, introduce a so-called "smart card" system for "smaller devices". Embedded devices are, judging from the report, only one of Microsoft's aims. The company is probably reacting to a deal a few months ago when Symbian was formed. Microsoft was unavailable for comment at press time. ®