After the Windows Vista operating system was launched, everyone expected a popularity decrease and consequently, a production stop for the veteran Windows XP. Surprisingly, after more than six years of activity and new and improved versions available, the operating system will continue to be put to use.

The decision taken involves the use of XP on ultra low cost PCs (ULCPCs) and will remain effective until June 30, 2010, or until a year after Microsoft presents the new Windows 7 – whichever date will come first. The segment reffers to systems under $400 and is looked upon as a very good and profitable investment. The systems are expected to play a major role in PC markets all around the world, for students and first-time PC buyers in emerging markets and the developing world, in countries such as India and China.

The ULCPCs general presentation include a smaller screen size and flash-based storage, also including slower, lower-powered processors. The XP turned out to be the best alternative for these computers, considering that large applications, such as Vista, need much more resources than low cost PCs can offer.

"There's a fair amount of buzz around this category and it's likely to sell a lot. Microsoft wouldn't want to miss out on that market," stated Roger Kay, president of Endpoint Technologies Associates, and adding: "With Intel putting a lot behind [the segment], Microsoft realized that a lot of momentum might gather behind it and didn't want to miss it. This is their best proposal, and XP is probably the best option," as quoted by TechNewsWorld.