it seems to be the case, see blog below from Visual Studio ALM
http://blogs.msdn.com/b/buckh/archive/2011/03/17/visual-studio-setup-projects-vdproj-will-not-ship-with-future-versions-of-vs.aspx

Visual Studio 2012 Compatibility
http://msdn.microsoft.com/en-us/library/hh266747.aspx

Some people have suggested as an alternative to keep VS2010 around to build
.vdproj setup files, but I think this is only s short term solution.


On 5 October 2012 09:12, Greg Keogh <g...@mira.net> wrote:

> I have been sanity checking that VS2010 projects will open and build in
> VS2012. I have stumbled across that fact that ‘vdproj’ setup projects are
> no longer supported. I heard nothing about this and it’s quite a shock. I
> have dozens of setup projects that with custom actions to install web
> sites, services and desktop apps.****
>
> ** **
>
> Web searches so far hint that I can convert the vdproj files into
> InstallShield Limited Edition projects (I’ve never used them), or I’m
> supposed to use WiX (huge learning curve?). THIS 
> link<http://blogs.msdn.com/b/buckh/archive/2011/03/17/visual-studio-setup-projects-vdproj-will-not-ship-with-future-versions-of-vs.aspx>says:
> ****
>
> ** **
>
> Future versions of Visual Studio will not include the Visual Studio
> Installer project templates. To preserve existing customer investments in
> Visual Studio Installer projects, Microsoft will continue to support the
> Visual Studio Installer projects that shipped with Visual Studio 2010 per
> the product life-cycle strategy. For more information, see Expanded
> Microsoft Support Lifecycle Policy for Business & Development 
> Products<http://go.microsoft.com/fwlink/?LinkId=197493>.
> ****
>
> ** **
>
> However, the link leads to a generic Support page with nothing about setup
> projects.****
>
> ** **
>
> What am I supposed to do with all my vdproj files? This is a small
> disaster for migration to VS2012.****
>
> ** **
>
> Greg****
>
> ** **
>

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