The earlier announcement of the Windows Phone 8 received mixed reactions. One — that it’s time for MS to add those features WP7 should have had in the first place and; two — that all existing WP7 handsets will not be upgraded to WP8. In the middle of it all is Nokia which just released their new line of Lumia WP7 smartphones.
Usually, with major mobile OS upgrades, entry-level to mid-range smartphones are normally bypassed on the updates (mainly due to hardware support). However, Microsoft’s final decision that all WP7 handsets are not getting a taste of WP8 will send a chilling message to a lot of consumers.
Stop. Wait. Don’t buy yet.

Among all the partner handset manufacturers, Nokia seems to be affected the hardest. They just launched a slew of Nokia Lumia handsets, starting with the really affordable Lumia 610 and Lumia 710 to the more high-end Lumia 800 and Lumia 900.
But now that people know these handsets are doomed to not get WP8, it will be hard sell for Nokia to trump its newest and biggest phones yet. As some sort of consolation, Microsoft promised an incremental update to Windows Phone 7.8 (why they skipped WP 7.6 and WP 7.7 is a matter of consumer psychology) which will bring some of the cosmetic goodies of WP8. Then, it stops there.
I don’t think Nokia can really complain to MS. Besides, Microsoft is paying Nokia billions of dollars to adopt WP7. Maybe Microsoft is dangling yet more money just to keep Nokia happy and continue to produce more WP8 phones.

I dont think MS screwed Nokia. Theyre probably cutting their losses by using plan B. Plan B which is WP8. Lumias werent selling like hotcakes like they expected, with the their paltry specs and the release of big boys like HTC One X and SGIII, there was really no contest. If your know your going down, why not cut the cord that’ll drag you down and bring out the fresh goods or news of a product that will keep the current titans at bay.