... following the concession to extend the life of XP Home for the sub-notebook market until 2010, Microsoft has now granting the same reprieve for low-cost desktop PCs too.

Microsoft has been under pressure from computer makers to keep XP licensing available for budget systems. The last-gen OS was originally set for total extinction in June, 2008 — but the popularity of smaller boxes which lack the resources to run Vista adequately has caused Microsoft to rethink its earlier decision. Faced with either stopping all sales of XP or letting Linux eat the entire emerging market, Microsoft has chosen to let Vista slip back again.

The extension on XP home licensing expires in 2010, Microsoft has said Vista's successor, will already be in the hands of consumers.

In the meantime, Vista will still be pushed as the company's premier operating system. XP will only be offered as an alternative for the low-cost systems market, which has seen substantial popularity with computer makers recently.

Currently, Microsoft'gives Vista Business / Ultimate customers the opportunity to "downgrade to XP" option amidst complaints over its latest operating system.