Here's a quote from John "As of recently, the Smart Watches with MSN Direct have sold out and are no longer for sale," Canan writes. "While we continue to move forward with MSN Direct and seeking out new opportunities for devices that would benefit from the MSN Direct service, we, along with our watch partners, do not have immediate plans to create a new version of the Smart Watch, as we are focused on other areas of our business. We will maintain support of our watch customers and continue to deliver information to the watches, but we do not plan to increase our investment in the watch business going forward."
Note that even though you won't be able to purchase MSN Direct Watches, the .NET Framework team is alive and well and planning their next release.
It's a good job my MSN Direct watch is still able to tell the time!