Before Windows Phone, Microsoft had plans for a social media-centric smartphone, a platform that had the potential, but in the end, failed to gain any form of traction, and thus the whole thing went downhill. It seems Microsoft knew of the potential failure of the Kin devices beforehand, but went ahead with the launch anyway.
The Microsoft Kin became one of the company's biggest flops, and in no time, it was forgotten. However, thanks to a few leaked internal videos, we now know that Microsoft knew of the Kin's shortcomings. The company knew the devices were not performing well up to expectations, but for some strange reason chose to throw it out there in hopes folks wouldn't pick up on the obvious shortcomings.
The leaked videos are that of testers testing both the Kin One, and Kin Two. The videos showed testers having problems with the dialer, the touchscreen performance, usability and lag problems, and generally the overall performance of both devices.
The reason for Microsoft releasing the Kin devices before they were ready, might be due to the increase in pressure from both the Apple iPhone and Google's Android at the time. Furthermore, Microsoft's Windows Phone platform wasn't even announced yet. So the company needed something to keep it in the spotlight for a little bit longer. Ultimately, it worked for a while since the media was all over the Kin devices before they were launched, and the amount of attention Kin got would make anyone believe the devices were heading for certain success.
If the Kin had made its debut before the iPhone took the mobile phone market by storm, there is a high chance both devices would have found a space to thrive. But with the iPhone being what it is and smartphones quickly becoming popular, the Kin devices were truly dead before arrival.
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