Scheduled for release this year, Windows Vista will come in two versions for businesses, three for consumers and one for emerging markets.
The home versions will be called Home Basic, Home Premium and Ultimate, the company said.
'We live in a digital world that is filled with more information, more things to do and more ways to communicate with others than ever,' said Mike Sievert, corporate vice president of Windows Product Management and Marketing at Microsoft.
'The PC needs to give people the clarity and confidence to handle this `world of more` so they can focus on what`s most important to them. With our Windows Vista product line, we`ve streamlined and tailored our product lineup to provide what our customers want for today`s computing needs."