Microsoft is keeping to a plan to stop selling the operating system even though surveys show a lukewarm response to Windows Vista among consumers.
A poll by US market research firm Harris Interactive found that only 10% of those questioned were planning to upgrade to Vista in the near future.
All versions of XP, including those made for media centre or tablet PCs, are affected by the decision.
System shock
Microsoft has confirmed that from 31 January 2008 large PC makers, such as Dell, HP and Toshiba, will no longer be able to buy licences for the software so they can install it on new machines.
Windows XP is being retired to make way for Windows Vista, the consumer editions of which were launched in Europe on 30 January.
However, a poll released in early April suggests that Vista has yet to win over significant numbers of potential customers.
The study of 2,223 web-using Americans found that although 87% had heard of the operating system only 12% of those who knew of it were planning to install it.
While the survey did find that some people waited for
Vista before buying a PC, 60% said its appearance had no effect on
their spending plans.
It also found that 79% of those questioned were using Windows XP on their home PC.
Robert Epstein, Microsoft's european spokesman on Windows licencing, said: "There's no significant change with XP compared with how we have done it with other operating systems."
He added that PC makers could get hold of licences until 2009 if they bought them from third-party suppliers rather than Microsoft.
Mr Epstein said withdrawing XP licences had no implications for long-term technical support for the product.
"This is purely about availability of brand new licences for brand new machines," he said. "We'll continue to support XP for some considerable time."
Microsoft has a well-established program that governs the lifecycle of its products and how long they have before licences stop being offered or support is withdrawn.
Upgrade upheaval
In related news, the software firm has reminded those who tested early versions of Windows Vista that the software will stop working on 1 June.
Millions of people downloaded and installed pre-release versions of Vista to see what the software was like and to help Microsoft fine tune the finished product.
However, these early "release candidate" editions of Vista had a limited life.
"So customers need to decide if they want to move to Windows Vista or back to Windows XP if they have test versions of Windows Vista on their PCs," said Cori Hartje, director of Microsoft's genuine software initiative, in a statement.
The pre-released versions of Vista do not allow users to rollback to earlier versions of Windows installed on a PC which means that people will must re-install either their old operating system or upgrade to a full version of Vista.
In a further complication, if users choose to upgrade to Vista from a release candidate they must use a full and final version of the Ultimate edition of the software rather than a cheaper "upgrade" edition.
Vista is available in six separate versions - three for home users, two for businesses and one for emerging markets.
Microsoft has found itself in hot water recently with its "Windows Vista Capable" branding. Initially, customers were upset because they found that some "Windows Vista Capable" machines were only able to run Windows Vista Home Basic, accusing Microsoft of using bait-and-switch tactics with the entry-level operating system. Last week, the issue was taken a step further when it became a class-action lawsuit in US District Court, and that led Microsoft to tighten the definition of "Windows Vista Capable." Even so, the lawsuit stands, but Microsoft's senior vice president and general counsel feels that the company has satisfied its customers.
At a news conference in Tokyo, attorney Brad Smith told the media, "I actually don't think there have been a lot of problems that consumers have encountered although I think there are a few lawyers and law firms that have pursued an action that are presenting such a picture." Smith went on to say that most machines can run Vista Home Premium, but even Vista Home Basic has a lot to offer.
"Most of the PCs are able to run the kinds of versions like our Home Premium version that have virtually all of the bells and whistles. Even the machines that are not able to run something like Home Premium are able to run a version that provides many if not most of the major advances that are important to consumers."
While Microsoft would obviously have preferred this never happened, Smith did choose his words carefully, not writing Home Basic off as a waste. For Microsoft, wording will be everything moving forward with this case as it needs to stress that Home Basic is a worthwhile operating system but still promote upgrades such as Vista Ultimate Edition. Then again, if you're in the market for a new PC and you've heard that Home Basic is limiting, would you look to a different brand of operating system or would you simply buy a computer running a more advanced version of Vista?
And you know what else? Thats FASTER than XP's adoption rates, and XP is not only Microsoft's number one OS, it's the number one OS ever in terms of sales, and Vista is all set to take over its lead! Start downloading Boot Camp you fanbois! You can now install Vista on it too! Shows even Apple has succumb!
Microsoft sent out a security advisory on Thursday warning customers that a vulnerability in ".ani" files - used to change the cursor into an hourglass while a program works, or into a dancing animal or other animation on specially designed websites - was allowing hackers to break into computers and install malicious software.