Microsoft XP still has a future with the ultra-low-cost PCs, Microsoft announced on Thursday, until the later of June 30, 2010 or one year after the general availability of the next version of Windows. The extension is necessary as ULCPCs are unable to run Windows Vista, said Michael Dix, General Manager of Widows Client Product Management.

“Customers and partners have made it clear to us that Windows is the preferred operating system for ULCPC buyers, just as it is for mainstream PC users,” said Dix. “That’s why we are extending direct OEM sales of Windows XP Home fro ULCPCs so that they an preinstall Windows on these devices (…) While Windows Vista provides many benefits, including an easier and more secure user experience, Windows XP Home provides an effective solution on these devices from a performance and cost perspective.”

Although extended, Microsoft isn’t planning any extended sales of other editions of Windows XP after June 2008, Dix said, adding that the company is very happy with the progress Windows Vista has made so far. The support for Windows XP is said to continue as planned: technical support until April 2009, extended support until April 2014.

Low-cost PCs are a class of devices with limited hardware capabilities, smaller screen sizes, low-power processors, initially created for emerging markets. However, ULCPC developers have started a new market strategy that aims at bringing such affordable devices to developed countries as well.

“We are also taking a number of steps to enable our partners to support this growing class of computers,” he added, “such as publishing formal design guidelines to the Web to enable manufacturers to build Windows-based flash-based machines with even greater hardware limitations,” which will help PC makers build reliable, low-cost and easy to maintain ULCPC.