It’s making its way around the interweb that the recently launched Microsoft Kin phones are being shelved. According to an Engadget report, sources close to Microsoft state that Andy Lees has rolled Kin into the Windows Phone 7 team and has canceled the existing product’s launch later this year in Europe on news that sales weren’t as strong as expected.

Here’s Microsoft’s official statement:

“We have made the decision to focus exclusively on Windows Phone 7 and we will not ship KIN in Europe this fall as planned. Additionally, we are integrating our KIN team with the Windows Phone 7 team, incorporating valuable ideas and technologies from KIN into future Windows Phone releases. We will continue to work with Verizon in the U.S. to sell current KIN phones.”

Interestingly, CNET is reporting that Roz Ho — the exec who masterminded Kin under the codename “Pink” following Microsoft’s acquisition of Danger — will “oversee” her team’s move over to Windows Phone 7 before taking a to-be-determined role elsewhere in the company.

In case you did blink, here’s a product review that the good folks at PhoneArena did of the Kin One and Kin Two back in May.

With me being an iPhone devotee, I don’t really have an opinion on this Kin device. I saw the commercials and wasn’t really impressed with the overall design.

Did any of you Verizon subscribers get one of these? If so, how do you feel about the untimely demise of the Kin?