My Sony Xperia already has an interactive watch accessory apparently, with 'dozens of widgets'. what more would you want from a one inch screen? http://www.sonymobile.com/global-en/products/accessories/smartwatch/specifications/

Yawn... Sony Ericsson had this almost a decade ago. Sony already had 2. I've been quite happy with my SmartWatch for a while now.
I haven't had the chance to try Samsung's or Apple's yet... oh wait... they don't exist yet... Don't you just LOVE vaporware?

Microsoft was the first to the party, with SPOT (here's a press release from 2006: http://www.microsoft.com/en-us/news/press/2006/jan06/01-04ExpandsWeatherStationsPR.aspx) They were a bit ahead of their time... Meanwhile, SPOT has morphed into the excellent .Net Gadgeteer system.

For receiving notifications this might be worthwhile. But really, for any interaction it comes down to screen size and interface. Too small for even a Minuum keyboard, this may only appeal to the cyborg wanna-bes.

@Bruce H. Anderson
I disagree. I think there are a lot of things that don't require a keyboard to do. You can read texts, control music, take phone calls, dictate texts back through speech to text, use "facetime" etc.
People under value the potential usefulness of a decent smart watch.

A microsoft smart watch should be abandoned as an idea. They are notorious for bad design, poor service, unreliable products and excepting xbox poor hardware.
If I owned a Microsoft smart watch it would regularly freeze, get slower and buggy, would need to be shut down and restarted regularly each day. I'd get frustrated and phone customer service to be put on hold for 20 minutes to find the person suggests it's not the problem of their product but some third party thing. I'd have to delete and reload everything to find the problem still exists. After numerous calls to Microsoft I'd start to become an expert at trouble shooting fixing my smart watch which by now is anything but smart.
I'd buy Samsung, Google or Apple instead.That is if I ever saw a need to buy.

http://www.pcmag.com/slideshow/story/296609/the-digital-watch-a-brief-history/8 It (somewhat) reminds me of the Seiko TV Watch. Perhaps the smart watch is just an advanced form of it? There are other 'smart' watches being discussed from way back at this site.

You know which Microsoft technology would be brilliant in a smart watch? SmartGlass, their second screen technology for the XBox. Instead of fumbling around on a tiny touchscreen, you would just hit a button and your apps would open up on a nearby phone, tablet, PC or TV.

this wont catch on at all, the best up and coming gadgets which will be popular are smart glasses/lenses (such as google glass/es) and smart arm bands (like in black ops 2 http://i731.photobucket.com/albums/ww312/lynseed_photos/airsoft/BO2-5_zps1e180279.png )

I tend to agree with Diachi. IF the main way of interacting with the watch is via the voice, as in Siri, or Google Voice, and the technology is really attuned and responsive to it's owner, (clearly a big 'if'), a wrist computer could be extremely useful.