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IMO Microsoft will do everything they can to scare people away from XP and into 8.1, but in truth they are running-out of Security holes to fill in XP, and in any case one can typically fill those holes with 3rd party protection e.g. Comodo or Kaspersky or what-have-you.

So unless you find a new program that you have to have that doesn't work properly with XP there's really no reason to panic and bail on it. I in fact have one PC that runs software that ONLY works on XP (will not function properly on any of Vista, W7, or 8.x), and that PC will remain in my stable for as long as I need/want to use that particular software.