I am pretty sure MS is not faced with this new invention, but I think it is an interesting idea and I am sure people will come up with loads of things to do with it.
It is a flexible display consisting of foam and force sensors which is deformable. It’s called Impress and works with the parameters position and time like other touch screens as well, but in addition to that, it reacts, above all, on the intensity of pressure.
check out the video below:
and more info here