Microsoft might be planning on doing more than just launching (re-launching?) new tablet devices at CES next month — it might also be previewing a whole new version of Windows.

As we noted earlier Wednesday morning, reports indicate that Microsoft is planning on unveiling a version of Windows specifically targeted at low-powered devices that run on chips based on designs from ARM Holdings.

This operating system, which would not be related to the Windows Embedded CE family of operating systems for mobile and embedded devices (and acts as the basis for Windows Phone 7), would be a departure for the software giant.

Historically, Microsoft has targeted x86 processors — meaning those from Intel and AMD — for its flagship Windows OS. According to The Wall Street Journal, it will be this OS (or at least a subset of the main Windows system) that will be showing off ARM support at CES in January.

Despite powering the overwhelming majority of desktop and notebook computers, Microsoft has struggled in the smartphone and tablet space. These devices overwhelmingly use low-powered chips, which means they use the ARM architecture as opposed to systems from Intel. These chips not only consume less power (which allows for better battery life), they are also much less expensive when purchased en masse.

Part of the reason that the company has struggled is that its operating systems for mobile and desktops have existed as fundamentally separate entities. This is in contrast with its competitors, which include Apple and Google.

The same underlying base OS that powers Mac OS X also powers iOS. That means that features between the two systems can be more easily interchanged. The modularity of that system means that the same core can be compiled to run on chips from Intel or ARM.

Likewise, the Linux kernel, which is used in Google’s Android, is revered for its modularity and ability to run on virtually every kind of microprocessor.

In the past, Microsoft has claimed that newer chips from Intel will be both low-powered and x86-compatible, but realistically, ARM is a problem Microsoft needs to solve.

The big question, of course, is when will Microsoft actually release an ARM compatible OS? The Wall Street Journal says that Windows 8 is two years away, which seems like an awfully long time to wait.

Perhaps Microsoft has a cut-down version of Windows 8 that can be used on ARM devices that can hit the market sooner rather than later. The success of the iPad shows that simply putting Windows 7 on a touch-screen tablet isn’t going to capture sales. Systems and software need to be designed for the form factor.

As expected, a massive upgrade to the iPod touch was announced earlier today at Apple’s special event. Although the most outwardly impressive revisions come by way of front and rear facing cameras and the retina display, perhaps more significant was the announcement that the device would house the same chip capably powering the iPhone 4 and the iPad — the Apple A4.

The A4 mobile ARM processor is of particular importance when considering Apple’s mobile future. With today’s revelations that Apple has sold 275 million iPods and that 1.5 billion games and entertainment titles have been downloaded on the iPod touch alone, it’s not a stretch to see why Game Center was a cornerstone of the presentation.

While Nintendo and Sony have both been busy manufacturing dedicated mobile gaming platforms, Apple has seized control of over 50% of the worldwide mobile gaming market with multi-function devices like the iPod touch. Although Apple has the market share, the more dedicated game design houses have, for the most part, stayed, in the Nintendo and Sony camps. For Apple to maintain market dominance, it’s going to have to start catering to more serious gamers, and that’s exactly what Game Center is all about.

A cornerstone of the presentation was codename Project Sword. Developed by Chair Entertainment, makers of the Xbox Live hit Shadow Complex, Project Sword will utilize the Unreal 3 engine, making it undoubtedly CPU-intensive. Despite all of that, let’s not sell its surface features short.

The A4 might be the linchpin of the device, but Apple has historically pushed more units based on looks than outright performance. The addition of a front facing camera to the iPod touch will put FaceTime in the hands of millions of new users, which could be enough to tip the scales toward actual usefulness.