Since the launch of Microsoft's Windows Phone 7, the market share of Windows-powered smartphones has fallen 38 percent, something unusual to happen following the debut of a new product.

The Windows Phone 7 hasn't even been on the market 12 months yet. Shortly after it debuted, Windows smartphone devices had an impressive eight percent market share in the U.S., but now that number sits at 5.8 percent, according to research firm Comscore.

However, earlier this year, Microsoft annoucned a huge, sweeping update headed to Windows Phone, saying it could revolutionized the way the world interacts with their smartphones.

The major change is the shying away from the traditional "download a million apps and use them independently" mindset, and instead incorporate all of the most pupolar apps into the software of the phone itsef. Microsoft wants all kinds of questions like movie times and train schedules to be answered in the same, universal navigation of the device.

That update is coming later this year, which could be a reason for why consumers are shying away from buying a Windows Phone device today.

Microsoft failed on its marketing message, hitting on features that were already commonplace on Android and the iPhone, making it seem out of touch, instead of focusing on what actually made Windows Phone 7 unique and special.

However, Microsoft's new alliance with Nokia is one other huge thing in Microsoft's favor. By next year, there will be numerous new handsets from Nokia, which has faltered lately because of its rigid software but has always been admired for its design and manufacturing of hardware, running on Windows Phone software.

"In other words, there are a lot of huge changes coming to Windows Phone, but the question on everyone's mind is whether or not Microsoft has already sealed its own fate with its poor handling of the operating system so far. Only time will tell," wrote Raven Lovecraft of tgdaily.com.

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