Claiming the businesses' need for flexibility in running older applications, Microsoft is preparing something called Windows XP Mode for Windows 7. Set to be provided as a free to download 'add-on' to those running legit copies of Windows 7 Professional, Business or Ultimate, Windows XP Mode is basically a virtual environment with Windows XP SP3 which works under Windows Virtual PC and enables the installation and running of older software right from Windows 7.

With Windows XP Mode, Windows 7 should, at least in theory, be able to work with all applications/games available that support Windows XP, easing the pressure for those reluctant to move to the upcoming OS due to compatibility concerns. According to Microsoft, a beta version of Windows XP Mode and Windows Virtual PC for Windows 7 Professional and Windows 7 Ultimate will be available 'soon'.