Microsoft and One Laptop per Child (OLPC) jointly announced the signing of an agreement that will make Microsoft Windows operating system available on OLPC’s low-cost laptops, the XO laptops, specifically designed to introduce computing for the world’s poorest children.
XO laptops with Windows will cost $206 to $208. Only $3 is for Windows, while $15 to $17 covers the cost of adjusting the machines to run the operating system.
They are scheduled to begin their trial stage in June, but could to be released as early as September.
Windows XP will not be replacing the original Sugar Linux, they will both be available, and there might even be a model that dual boot with both Sugar Linux and Windows XP.
Here is a video demonstration of XO Laptop:

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