Microsoft is planning to update Windows Phone 8 to support 1080p resolutions. Sources familiar with Microsoft's Windows Phone plans have revealed to The Verge that the company will issue an update later this year that brings support for the 1080p resolution and new 5-inch and higher devices. Windows Phone 8 currently supports WVGA, WXGA, and 720p resolutions.

The update, known as a General Distribution Release (GDR3) for Windows Phone, will set the stage for new devices set to debut for the holidays. HTC had originally planned to release a "Zenith" flagship device with a 4.7-inch display and quad-core processor, but the company reportedly cancelled its plans as the device would have a lower resolution than its competing Android models. We understand that the GDR3 update will also provide support for new Qualcomm processors, allowing manufacturers to opt for quad-core devices with Windows Phone.

Microsoft's update will arrive as part of the new devices, but we understand that it's not directly related to the company's Blue plans for Windows Phone — a codename for a future upgrade. Windows Phone Blue is tentatively scheduled for early 2014 and will help bridge the gaps between Microsoft's Windows 8 operating system and Windows Phone 8. The software maker is planning to enable additional points of synchronization, including the browser, to further integrate both operating systems.