Microsoft announced that they have removed the netbook restrictions that previously prevented OEM and ODM from installing any version of Windows 7 on their netbook. The lifted restriction means OEM and ODM can install Windows 7 starter on a netbook, and that the three application restriction has been removed as per consumer's request.

Windows 7 Starter and Home Basic variety only come in 32bit versions and are missing a variation of features from the higher end versions. Some of the features missing from Windows 7 Starter including: Aero Glass, Taskbar Preview, Aero Peek, Desktop personalization, Fast user switching, Multi-monitor support, DVD playback, Support for domains and XP Mode, Windows Media Center. Home Basic also lacks some key Windows 7 features including Aero, Taskbar Preview, Internet Connection Sharing and some other features. Windows 7 Starter and Home Basic will not be sold in the US, Europe and other established markets.