XSD is an acronym for XML Schema Description. Files that contain the .xsd file extension are used in order to determine which attributes and elements will appear in an associated XML document. An XSD file may also be used to determine what data is stored in the file elements.
The XSD file extension is also used by the Pattern Maker software application (a cross stitch program). It uses .XSD files to store cross stitch patterns (designs) created by professional and amateur cross stitch fans. These designs can be transfered to an embroidery machine, which will stitch the design automatically, without human intervention.
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If you have additional information about the XSD file format or software that uses files with the XSD suffix, please do get in touch - we would love hearing from you.