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Microsoft has just unveiled the latest version of its mobile operating system — Windows Phone 7 Series — live at Mobile World Congress in Barcelona.

Among the highlights, the company says in a statement that “for the first time ever, Microsoft will bring together Xbox LIVE games and the Zune music and video experience on a mobile phone.”

There’s also significant social media integration. Users can post status updates and photos to multiple services at once, and updates from friends can be streamed to the home screen. Not surprisingly, the default search and map services are provided by Bing (), and Microsoft says all Windows Phone 7 devices will come with a dedicated hardware button for them.

Here’s a demo from Microsoft:

The user experience seems to closely resemble that of Zune — not unexpected given recent speculation that Microsoft would unveil a so-called “Zune Phone” at MWC. Although today’s announcement isn’t dedicated to any one specific device, the company said that “every Windows Phone 7 phone is a Zune,” meaning it includes the Zune music and video software.

Here are some images:

Windows Phone 7 devices will hit before the 2010 holidays. Hardware partners include Qualcomm, LG, Samsung, HP, HTC, Toshiba, Garmin Asus, Sony Ericsson, and Dell. Carriers slated to offer Windows Phone 7 devices include AT&T, Verizon, Sprint, T-Mobile, Orange, Telefonica, and Telstra.

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