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This video tutorial explains the concept of file extensions and their importance in identifying the type of file. It mentions how file extensions help in differentiating between a movie, song, or document. The focus is on the transition from the traditional ".doc" extension to the new ".docx" extension in Microsoft Word documents. The video raises questions about whether the change is meant to make the software more appealing or if it signifies a move towards newer, more advanced formats. It concludes by stating that the switch to the ".docx" format does indeed offer improved features and a more aesthetically pleasing document layout.