My TI Chronos "development kit" watch (AKA my normal watch) contains a CC430F6137 mcu, which has 32 kB flash and 4 kB RAM. It contains a MSP430(X) core and a CC1101 RF front-end for communicating with other accessories or a computer.
It's running the (custom/not from TI) open-source firmware openchronos-ng-elf, which is on github. When I get around to it, there are a few features I'd like to add, but it's nice just to know that I can.
Quarts watches use 32.768kHz(1/2 * 65536 Hz) crystal, means its output through binary counters easily produce clocks at base 10 fractions of seconds. That could be then fed to decoders to LCD, so no need for uC.