It is very unusual for Microsoft that there hasn't been a leak yet, if we are to believe Gizmodo's story that Microsoft will announce a new product at 12:01am EST. The new hardware is supposed to come from the division of Microsoft that launched the Xbox and the Zune. It's "something totally new coming out of the Entertainment and Devices division, and it's going to change the way people interact with technology," according to an e-mail Gizmodo received mistakenly through "official channels".
Mary Jo Foley is speculating that Microsoft's "Milan" multi-touch and gestural interface technology is going to be put to use. Milan, the technology previously known as "PlayTable," and, later, "Table," allows users to navigate and manipulate data inside a browser or application using gestures. Currently, the Milan Project sits in Microsoft's Mobile and Entertainment Division, which may be a hint that Microsoft might incorporate the Milan multi-touch capability into Zunes, Windows Mobile phones, Tablet PCs or Ultra-Mobile Personal Computers.