Updated!

Los Angeles Times – January 1, 2006:

Google will unveil its own low-price personal computer or other device that connects to the Internet.

Sources say Google has been in negotiations with Wal-Mart Stores Inc., among other retailers, to sell a Google PC. The machine would run an operating system created by Google, not Microsoft’s Windows, which is one reason it would be so cheap — perhaps as little as a couple of hundred dollars.

Bear Stearns analysts speculated in a research report last month that consumers would soon see something called “Google Cubes” — a small hardware box that could allow users to move songs, videos and other digital files between their computers and TV sets.

If this is true, I’m shocked that Google is willing to compete with Microsoft head-on. This will certainly be a zero sum ploy as Microsoft will never give Google a second chance. It’s do or die, but the game should be very entertaining to watch!

Update:

Google and Wal-Mart are both denying reports that the two are planning to market low-priced, Google PCs via Wal-Mart stores.