As Redmond, Wash.-based software giant Microsoft scrambles to meet the already-delayed release date for its upcoming Vista OS, the company is also working on another version of its Windows OS, Windows CE, meant for usage in small- to mid-sized electronic devices, the Associated Press reports via the New York Post.On Tuesday, a test, or beta, version of the updated OS will be debuted to developers at a conference in Las Vegas, according to the AP.\u00a0Included within the new OS will be the basis for Microsoft\u2019s OS for mobile devices, Windows Mobile, the AP reports.Vista is slated for release to consumers in early 2007.Products featuring both the upgraded Windows CE and Windows Mobile systems will be available to consumers sometime during 2007, according to the AP. Microsoft is attempting to make headway into the booming high-end cell phone market while still keeping Windows CE available to consumers for use in other electronics, the AP reports. Though Microsoft could potentially thrive in the mobile market, it won\u2019t be easy, as the company will surely have to tailor its operating systems to a wide variety of mobile devices.Jupiter Research analyst Joe Wilcox told the AP, \u201cThe company\u2019s historically about what?\u00a0Operating systems. And operating systems are used by more classes of devices.\u201dRevenue derived from Microsoft\u2019s mobile and embedded chip devices division represents a mere $89 million of its more than $10.9 billion in\u00a0last quarter\u00a0sales, and it has not consistently reported profits, according to the AP.Microsoft will also face fierce competition from the likes of Research In Motion\u2014whose popular BlackBerry handheld has built a large, extremely loyal following\u2014and Palm, maker of the Treo handheld.\u00a0The company may have an edge in that Windows Mobile will be very similar to the widely used Windows XP system; however, Microsoft will have to boost the OS\u2019s functionality, as it\u2019s already associated with clunkiness, according to the AP.Kevin Dallas, general manager of Microsoft\u2019s mobile and embedded devices unit, told the AP Microsoft\u2019s main challenge will be to simplify all the functions contained within Windows Mobile. Ease of use is absolutely essential since handhelds work best with simple, intuitive systems, Dallas told the AP.Analysts predict that the majority of companies are likely to stick with trusted homegrown or open-source systems until Microsoft can prove Windows Mobile is a worthy competitor, instead of taking a chance with a new product that hasn\u2019t been vetted, the AP reports.This article is posted on our Microsoft Informer page. For more news on the Redmond, Wash.-based powerhouse, keep checking in.For related news coverage, read Microsoft Chases Online Ad Revenue With Ad Center and Microsoft Nears Massive Ad Deal.Check out our CIO News Alerts and Tech Informer pages for more updated news coverage.