The report cites "multiple sources with knowledge of the company's plans" who claim that Microsoft is working on a sensor-rich smartwatch which syncs with with iOS, Android and Windows Phone. The device is said to "continuously measure heart rate through the day and night" and feature a battery that "will last for two days."
The report goes on to explain that "the watch will look similar to the Samsung Gear Fit and feature a full-colour touch screen about the size of half a stick of gum, positioned on the inside of the wearer's wrist." Which sounds a bit weird, but according to the sources that screen placement is designed to make it easier to see notifications.
Apparently a team of "engineers from Microsoft's Kinect division, designers and data scientists" have been working on the software for the new device that will "correlate data from the device's sensors." What it will do with all that data isn't clear, though.
Of course, while it's incredibly likely that Microsoft is indeed researching a smartwatch, whether it will ever see the light of say is quite another. [Forbes]