This error message indicates that Team Explorer 2012 is required to create Team Project in Team Foundation Server 2012.
You must install Team Explorer 2012 to create Team Project. If you do not have the installed version of Visual Studio 2012, Team Explorer 2012 will be installed as a separate application that you can use to connect to TFS. This will be installed next to Visual Studio 2010, it will not upgrade your existing installation. As Allen notes in his answer, you can connect to an instance of TFS 2012 from Visual Studio 2010. To create Team Project, you need the appropriate version of Team Explorer .
Edward thomson
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