CNET is running an article about Microsoft’s planning for next year’s Origami devices, dubbed ‘Vistagami’ within Microsoft.

As with the first generation of Windows XP-based minidevices, the Vistagami products will be built on top of the operating system, Krammer said. They will come with a software pack that adds features to make it easier to navigate around or open programs on a device that has a 7-inch or smaller display. Other features are still being determined, she said.

The devices will require Windows Vista Home Premium, Ultimate, or one of the business versions of the upcoming operating system, because they rely on the touch and tablet capabilities included in those editions.

Even with the new operating system factored in, Microsoft hopes the price of the devices will be somewhat lower than that of their predecessors, though the improvement isn't expected to be dramatic.

"We're not saying in the Vista time frame we'll see it slashed by 50 percent," Krammer said. "We're not going to reach the ultimate $500 price range at the time of the Vista launch."

In addition to talking about next year’s devices, Microsoft’s Mike Krammer had this to say regarding this years launch:

While Microsoft was under no illusions that it could hit its long-term $500 price goal, the company said Tuesday it was not happy with how expensive the first devices turned out to be.

"We were (disappointed)," said Mika Krammer, a director in Microsoft's Windows product marketing unit. "We would have liked to have seen a lower price point."

Krammer said Microsoft doesn't have much say in what the final price of the device is, but conceded "the ding accrues to us, regardless."