Now they will start to sell laptops with pre installed Chrome OS:http://www.google.com/chromebook/chromebooks.html
It will be exiting how it will go.
I remember the Eee PC with Xandros:http://en.wikipedia.org/wiki/Asus_Eee_PC#Linux_on_the_Eee_PC
Microsoft killed that market fast when they put in Windows XP in Eee PC.
And in fact I think they chrused Xandros to, latest stable release with it was:
4.2 / July 26, 2007 so you could say its a dead project now.
Xandros had a deal/cooperation with Microsoft about media codecs etc..
But it seems that Microsoft used the old "Embrace, extend and extinguish" tactic against them:http://en.wikipedia.org/wiki/Embrace,_extend_and_extinguish
I wonder what Microsofts move will be this time?
Google is much stronger than Xandros, so it be very interesting.