You may or may not have heard of Microsoft's Windows Phone "Tango" update, but it's the rumored codename for the company's next version of the software. Previous reports suggested that the update is designed to drive down the cost of manufacturing Windows Phones, but how does Microsoft plan to achieve this? We have heard that Microsoft's biggest work with Tango is reducing the RAM requirement for Windows Phone. We have been informed, but cannot immediately verify, that Microsoft will actively support just 256MB RAM, from the standard 512MB found in today's devices. Although this is a current hardware requirement, most devices use 512MB of RAM.

This alleged engineering work could indicate that Tango is designed specifically for low-end handsets, and that the update might not make its way to all devices. However, Michael Gillett, a Microsoft enthusiast in the UK, revealed this week that he has been tipped that Tango will include Start Screen folder support and a revised UI for the built-in media controls. Gillett claims the media controls will take up less space at the top of the screen to look like a notification. As a result, we would expect to see these type of changes for all Windows Phone users.

A leaked Windows Phone roadmap implied that Tango will arrive in Q2 of 2012, a date range that appears to be accurate. Coupled with Microsoft's plans to allow OEMs to support new chipsets, and the alleged 256MB memory requirement, we're hearing there will be more details on Windows Phone updates at Mobile World Congress next month in Barcelona.

Update: We have updated the article to link to the current hardware requirements of Windows Phone.