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.
There are two schools of thought out there, the first says this:
PCs will be so powerful, they will understand your search habits and gather information from the 'net day and night storing it on your cheap terabyte hard drive and organizing it to your liking, even pushing information to you.
Days of the powerful PC are numbered, information will be organized in central locations where it will be accessed by terminal-like machines.
This is the great client / server question. With Google's vision of organizing information, they don't have a need for powerful computers at each home. I can believe they might introduce thin client like machines that offer the basics of internet access and multimedia via streaming online services.
It sounds to me like they are going to be making cheap computers, at a near loss.
What good are all of these low-end computers if Google doesn't retain their search engine, and/or Advertising dominance? Sounds like they are still leaning heavily on AdWords/AdSense to make money...
I don't think that any large companies would impliment the "Google" computer either. For privacy reasons primarily... and the fact that 99% of the end users out there don't know their ass from a hole in the ground.
If YPN, or MSN, or any other company for that matter - takes market share away from Google, they could end up with a lot of "empty" or less targeted ad space out there. It's bound to happen sooner or later.