Although Microsoft announced that it will cut down the support for Windows XP as the new Vista establishes itself into the market, the Redmond giant now changed it’s mind and decided to offer Windows XP for two more years.

Microsoft’s decision comes after it realized that a new emerging sector of the market, the ultra-low-cost PCs or ULCPCs, is not covered by Windows Vista as the OS is too resource-hungry for the modest hardware the equip these PCs. Unfortunately, Microsoft will only offer the Home version of XP, so the enterprise features of XP Professional will no longer be available.

“ULCPCs are a new and growing class of mobile computers designed for first-time PC buyers and customers interested in complementing their primary Windows-based PCs with companion devices with limited hardware capabilities. These machines vary, but they typically have smaller screen sizes and lower-powered processors than more expensive mobile PCs. While originally intended for students and other first-time PC customers in emerging markets, we’re now seeing interest in these affordable devices in developed countries as well,” said Michael Dix, General Manager of Windows Client Product Management.

Windows XP Home for ULCPCs will be available until the later of June 30, 2010, or one year after general availability of the next version of Windows. When asked if Microsoft will extend sales of other editions of Windows XP, Dix said: “No, there is no plan to extend sales of other editions of Windows XP beyond June 30, 2008.”