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Seeing as the apps they showcased were all desktop and no metro, does this mean the app store will now sell desktop apps going forward? Any word on different sandbox restrictions to go with it?

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Devs will be able to turn their existing win32/desktop apps into windows app store compatible apps using "Project Centennial" from the sounds of things.

http://liliputing.com/2015/05/this-is-how-win32-apps-can-bec...

I suspect that has a lot to do with trying to get corporate users to move off Windows 7, which the basically refused to do with Windows 8, thanks to the fact Windows 8 tried relegating desktop apps to second class Windows citizens, behind metro.

Since corporate Windows users tend to run mostly desktop apps, if modern Windows is not going to support their apps they will not move.

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