Their is an update. It's called Windows Phone 8
answered Jan 21 '13 at 19:15
Windows Phone 7.8 will never get another update, other than perhaps bug fixes. Microsoft has determined that devices created prior to Windows Phone 8 being released do not have the features and power necessary to handle the upgrade. Kind of a raw deal for early adopters, but not unprecedented.
answered Jan 23 '13 at 20:20