Microsoft has unveiled a roadmap for its Windows Embedded business along with a new programme for students and hobbyist developers.

The initiative will involve dividing the embedded versions of Windows XP into four new products for various types of machines.

The former Windows XP Embedded will be known as Windows Embedded Standard, while Windows CE Embedded will become Windows Embedded Compact.

The Standard version is scheduled for release later this year, and the Compact version in 2009.

Microsoft also plans to release enterprise and point-of-service packages under the Windows Embedded labels.

"Our aim is to present the Windows Embedded family in an intuitive fashion, making it easier for customers to choose the right platforms and tools for their needs," said Kevin Dallas, general manager of Microsoft's Windows Embedded division.

The company also plans to overhaul the way it deals with student and hobbyist embedded system developers with a programme known as 'Spark your Imagination'.

The initiative will allow developers to purchase hardware and software to design and develop embedded systems at a fraction of the retail cost.

Microsoft hopes that the scheme will further stimulate the development of devices that use its embedded software.

"Devices running embedded operating systems have seen explosive growth in the past few years, and this announcement demonstrates our commitment to the future of the embedded community," said Dallas.

"Our continued investment supports future innovation and new idea generation that will ultimately contribute to our vision of smart, connected, service-oriented devices."