That was my first thought, that this HAS to be an April Fools's joke that got run at the wrong time. However, these news sources are covering it:
Seattle Post-Intelligencer
Washington Times
and
here is the press release from Microsoft UK.
One of the newspaper articles mentions
this 1999 article from The Onion which announced the eToilet. Life really does imitate art, I guess.
-Mikey