Microsoft's new OS "Windows 7" will also appear next year

Microsoft's chairman Bill Gates said he said he might appear next year on the latest OS called "Windows 7" which is planned to be released next.

Apparently it seems that development is proceeding smoothly, but is that the latest OS "Windows Vista" currently on sale ends in short-lived?

Details are as below.
Gates: Windows 7 may come 'in the next year' | Beyond Binary - A blog by Ina Fried - CNET News.com

According to this article, Microsoft chairman Bill Gates said that it may be possible to release OS called "Windows 7", a new version of Windows in the lecture, next year.

Although the specific release date and details were not disclosed, "Windows 7" is for individuals and businesses, and 32-bit version and 64-bit version will appear.

For Windows XP, which is expected to continue sales, it is decided that "Home Edition" will continue to be sold only for low-cost machines.

In other words, is that "Windows 7" is the OS that most of the Windows XP users that currently have to change?