Windows Embedded CE 6.0 R2 also enables devices to connect to computers running Windows Vista and Windows Server 2008.
Kevin Dallas, general manager of the Windows Embedded Business at Microsoft, said: "Over the past two years Microsoft has invested more than $100m in Windows Embedded product development and associated R&D.
"In this year alone, we are increasing that commitment by 33 percent to US$75 million, including US$5 million for community and academic development."
Microsoft also announced the launch of its community-focused Spark initiative, a joint offering between Microsoft and a group of hardware vendors.
The programme is designed to encourage "hobbyist developers" and the academic community to use Windows Embedded CE 6.0 and Visual Studio 2005.
Microsoft currently provides software and materials for students and faculty in the technology and design fields under its MSDN Academic Alliance Programme.
Spark adds complementary offerings and extends them to the greater non-professional developer community, according to Microsoft.