Microsoft is not to be outdone by BlackBerry and the iPhone. The software giant is now working with the sellers of the Windows Mobile phone to cut prices to below $100. AT&T now offers the 3125 Windows Mobile model for $49.99, and another phone will go on sale for less than a hundred bucks next month. Microsoft didn’t name the company who’d be selling the device though.

Analysts say, however, that the Microsoft phone is rather unwieldy because it’s basically just Windows crammed into a small device. If Microsoft wants the mobile phone to be consumers-mart, they’ll need to rethink its usability. [bloomberg]