A sizzling hot breaking rumour suggests that Microsoft could drop its Windows Phone platform and instead adopt the Android OS with its own applications and services preloaded.

The rumor goes on to state that both Microsoft and Google would form a partnership that would see the former offer Android devices preloaded with Microsoft apps while the latter would develop versions of Google Maps, YouTube and Search designed for Microsoft’s desktop OS. Preloaded apps are likely to include Office, Skype and OneNote, which were all preloaded on the new Galaxy S6 and Galaxy S6 Edge as part of Microsoft’s deal with Samsung.

The rumor comes as Microsoft has agreed to sell part of Bing Maps to private taxi service Uber. As part of a restructuring led by CEO Satya Nadella, Microsoft has also agreed to close its Web display ads business and turn this over to AppNexus and AOL, the latter who was just acquired by US carrier Verizon Wireless. Potentially referencing the big changes afoot in Redmond, a letter from Nadella to Microsoft employees said the company needs to be prepared to make tough choices in areas where things are not working.

The potential decision to switch to Android follows news that Microsoft is reportedly considering a multi-billion dollar write-off of its hardware business. The company bought Nokia’s Devices and Services division in 2013 for $7.2 billion, which turned into a $9.4 billion deal once it closed but lower than forecast handset sales are forcing Microsoft’s top brass into a decision.

Read: Android could ignite the Nokia of old

When Microsoft bought Nokia, the company predicted that it would ship 1.8 billion handsets per year and own 15% of the smartphone market by 2018, which would deliver an operating margin of 5% to 10% and operating income of $2.3 billion to $4.5 billion. Speaking in a Securities and Exchange Commission (SEC) filing, Microsoft said that it’s unlikely they’ll hit their forecast. Both CEO Nadella and CFO Amy Hood have touched on the need to take further action to reduce costs and improve the product portfolio and Microsoft’s 10-Q filing with SEC spells bad news for Windows Phone fans. The filing reads:

“In the third quarter of fiscal year 2015, Phone Hardware did not meet its sales volume and revenue goals, and the mix of units sold had lower margins than planned…Given its recent performance, the Phone Hardware reporting unit is at an elevated risk of impairment. Declines in expected future cash flows, reduction in future unit volume growth rates, or an increase in the risk-adjusted discount rate used to estimate the fair value of the Phone Hardware reporting unit may result in a determination that an impairment adjustment is required, resulting in a potentially material charge to earnings.”

It seems more than likely that Microsoft will undertake a large write off on its hardware business but whether this will spell the end of Windows Phone is unclear. Microsoft is set to release its Windows 10 OS next month and it’s highly unlikely that Microsoft would scrap the mobile part of its new OS without giving it a fair chance to succeed. However, while past executives have been happy to make excuses for the underperforming Windows Phone division, Nadella appears to want results otherwise Windows Phone could go the way of Windows Mobile and cease to exist.

It’s worth noting that, at this stage at least, this is still a rumor and while a source at Microsoft has confirmed that Android is under discussion, it’s worth treating this with a little pinch of salt. We’ll obviously be watching this closely in the weeks to come and whatever Nadella and the Senior Leadership Team at Microsoft decide, it’s likely to be a decision that affects the entire industry. What do you think? Should Microsoft drop Windows Phone and offer its own flavour of Android? Let us know your views in the comments below.