Confirming the rumors from earlier this week, Microsoft has announced it plans to continue selling Windows XP beyond the previous June 30, 2008 deadline. However, according to the Associated Press, the reprieve applies to low-cost computers only.

Under Microsoft's new end-of-life schedule, Windows XP Home Edition will continue to be sold with low-cost machines like the Asus Eee PC and Intel's Classmate PC "at least through June 2010." However, Microsoft says it also plans to keep XP on the market for a year after the release of the next version of Windows, which is expected some time in 2010. In other words, XP-powered machines could stay on the market until 2011 and perhaps even later if Windows 7 ends up being postponed.Although the reprieve steals some of the spotlight from Vista, Microsoft isn't looking too bothered. The AP quotes Windows General Manager Michael Dix as saying, "There is incredibly strong demand for Windows on these devices, which is obviously great to hear." Dix adds, "The reason why they want Windows is, they think of Windows as being a real PC." That said, Microsoft is taking note of continued XP demand as it designs Windows Vista's successor. The AP quotes Dix as saying Microsoft is "grappling with how to serve a broader range of PC configurations than Vista does as it designs the next operating system."