Today Microsoft announced Service Pack 1 for .NET Micro Framework 2.0, their tooling entry for the low end embedded device market:
Today at the Embedded Systems Conference (ESC) Boston, Microsoft Corp. announced the availability of Service Pack 1 (SP1) for the Microsoft .NET Micro Framework 2.0, featuring new enhancements to build more secure, attractive, innovative and globalized applications. Demonstrating further momentum, Microsoft also announced that several partners completed ports of the .NET Micro Framework to additional development platforms and released new products built on the .NET Micro Framework.
The new features of Service Pack 1 provide precision-engineered functionality and tools that streamline the manufacturing process and ease the burdens often associated with the deployment of updates to devices in the field. Original equipment manufacturers (OEMs) and original device manufacturers (ODMs) can use the new tools to create their own customized deployment software for their unique manufacturing environments.
Microsoft is trying to keep Linux from running away with the low cost embedded device market as I mentioned when the .Net Micro Framework SDK was announced in February.