Microsoft will spend £260 million on promoting its new smartphone platform, it has been predicted, as it looks to mount a serious challenge to Android and the iPhone.
According to financial analyst Jonathan Goldberg, the technology giant has already paid out millions to manufacturing partners to cover the costs of building the first mobiles based on Windows Phone 7.
The software giant will have invested billions of dollars before Windows Phone 7 has even made it to the market, Microsoft executives allegedly told Mr Goldberg.
"This is make-or-break for them. They need to do whatever it takes to stay in the game. It's still wide open. They don't have to take share from Android or Apple, so long as they can attract enough consumers switching from feature phones," Mr Goldberg said.
The total costs of launching Windows Phone 7 will be roughly divided between marketing and development, according to sources quoted on Tech Crunch.
Windows Phone 7 app developers will be provided with the final set of tools to complete their apps in mid-September, ahead of a re-launch of the Windows Phone Marketplace at the start of October.
"We are investing a lot to attract developers big and small to Windows Phone 7 to let them understand what the opportunity is and provide as many resources as we can to help them be successful on our platform. We're open for business and we want to work with them," explained Microsoft's Todd Brix in an interview with Bloomberg.