Windows Phone 8 might be out in full force now, but the Windows Phone 7 series is still carrying on and will see an update to version 7.8 sometime early next year, according to Microsoft. The update will include resizable Live Tiles and new lock screen options. Microsoft says that the update will roll out "to as many devices as possible."
Unfortunately, not all existing Windows Phone 7.5 handsets will receive the update, but most existing users can expect an update to version 7.8 that will bridge the gap between their device and new devices running Microsoft's latest mobile operating system. WP7 users are upset as it is, since they won't be able to get WP8 on their current devices, so it's crucial that Microsoft roll out the update in a timely manner.
Microsoft’s corporate vice president of Windows Phone, Terry Myerson, said that “new models running Windows Phone 7.8 are beginning to launch in many countries around the world,” which means that there will technically be Windows Phone 7.8 devices out in the wild, but the update for existing customers won’t be ready to roll out until early next year.
Other features of Windows Phone 7.8 include 20 new theme and accent colors, new lock screen features that can display the Bing Picture of the Day, and an "A1B2C3" PIN/password challenge to prevent accidental device wipes on phones connected to Exchange accounts. While I'm sure most WP7 users would love to have WP8, WP7.8 seems to be a good compromise.