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According to one source, the XP in windows XP stands for 'Experience' (as in the "Windows experience"). A similar connotation was made for the 64-bit successor, Windows Vista.

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Another possibility (but not one Microsoft marketing would have chosen) :

The "XP" was meant to show the human side of the software by using two characters that were known to be used for smilies in textspeak : the X being squinting eyes while the P would be the mouth and protruding tongue.

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Among the Microsoft developers, XP is 2001 in Roman numerals.

The more standard MMI was avoided, because the MRNSDK (Microsoft Roman Numeral Development Kit) doesn't fully support the M symbol for 1000. Of course, P is not generally included in the Roman numeral system; it was quietly added between the 1.01 and subsequent 8.0 releases of the MRNSDK. Though undocumented, and possessing obscure semantics, the P extension is widely used. In any case, it is easy to verify through experimentation that XP = 2001.

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