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According to various reports, Windows Phone 8 will be released in mid-2012, and once it's released, developers will be able to use native code. The release is expected to allow the convergence of the Windows 8 OS as well, but there is still doubt that the two operating systems will be compatible.
Developers have been upset at the thought of using the C# programming language for Windows Phone 7 game development since it was initially announced--but Microsoft recently announced that Windows Phone will support native code, but only after Windows Phone 8 is released.