Microsoft has newly introduced hardware limitations on low-cost PCs -- at least those that want to continue using Windows XP beyond June 30.

We'd reported earlier that new-market segments like low-cost PCs (priced below Rs 20,000) would get an extension for Windows XP till June 30, 2010. However the introduction of hardware limitations serves as a dampener, rendering the extension meaningless -- to a large extent.

Reports suggest Microsoft having asked manufacturers to limit screen size to 10.2-inches, RAM to 1GB, hard disk capacity to 80GB, and processor speeds to 1GHz (with a few exceptions). Guidelines for low-cost PCs to use Windows XP have been set, stating minimum requirements of 500 MHz and 1GHz CPU speed and 2GB to 8GB flash storage.

Microsoft is in a bit of a catch-22 situation with having decided to pull the plug on Windows XP so as to promote its Vista operating system at the same time wanting to mark its presence in the low-cost PC market that Vista cannot entertain because of its high-power requirements.