After announcing its first foray into the tablet market with Surface, Microsoft has now unveiled its next generation mobile phone operation system, Windows Phone 8.

At the event in San Francisco, they announced that it will share the same core code as the new Windows 8 operating system on PCs, laptops and tablets. Developers will have the ability to easily port their apps and games over between the two, meaning that you will now be able to transfer your PC games straight on to your phone.

The tiled theme for Windows 7 continues, but with now even more flexibility as users can choose the size of, and how many tiles they want on their home screen. They have also announced their own mobile wallet that will be able to store everything from debit, credit and membership cards, to PayPal accounts.

But those who currently own mobiles running Windows phone 7 will be disappointed to hear that they won't be able to update to the new operating system.

It will be available this autumn where it will be in direct competition with Apple's latest mobile operating system, iOS 6.

Written and narrated by Alfred Joyner