Lately, it's been rumored that many big-name electronics companies are working on smartwatches to combat Apple's rumored "iWatch." Yeah, rumored devices to combat another rumored device. Go figure.

If there's any department at Microsoft that knows a thing about designing bangin' hardware, it's the Xbox team. You know, the guys that put the Xbox 360 and Kinect in millions of homes. According to The Verge, "a reliable source familiar with Microsoft's Xbox plans" says the Xbox team has been developing a smartwatch for "just over a year."

Current prototype watches reportedly have a 1.5-inch touchscreen display, removable bands and a magnetic power connector (similar to the one on the Surface tablet), which can transmit power and data.