Microsoft has been demonstrating its first Windows Phone 7 update, due to be released shortly.

The software giant sat down with Anandtech to show off some of the promised performance improvements in the first Windows Phone 7 update. Microsoft officially detailed its intentions for the first Windows Phone 7 update at CES 2011 last week. The company is planning to address missing copy and paste functionality, better marketplace search and improved performance for applications and games. WinRumors sat down with Greg Sullivan of Microsoft’s Windows Phone 7 team to talk mobile at CES. Sullivan explained that the first update will simply improve application start-up and resume times. Microsoft has been teasing build 7.0.7353.0 of Windows Phone 7 at CES to show off some of the performance improvements, seen below.

Sullivan also confirmed that the software maker is still deciding how much roadmap information to share at the upcoming Mobile World Congress conference in Barcelona next month. Microsoft is planning to unveil and detail a second Windows Phone 7 update in February. The software giant has chosen the Mobile World Congress venue according to sources familiar with the plans. Microsoft CEO Steve Ballmer is due to hold a keynote at the event and Microsoft’s press event will mark a year from when the company first unveiled Windows Phone 7 to the world. According to a source who spoke to WinRumors, Microsoft’s second update will be a significant one.

Microsoft is staying quiet on the release date for its first update but has promised there will be a number of upcoming improvements to Windows Phone 7 in the coming months. WinRumors understands that Microsoft is close to finalizing the first update and it is expected to RTM by the end January and will be pushed to devices in February providing carriers approve it.