Co-founder and president Larry Page is expected to announce the launch of a Google PC at the end of the week when he gives his keynote speech to finish CES in Las Vegas if an article in the Los Angeles Times is to be true.

The news has set the Internet alight with rumours of what a Google-based operating system could mean to the general public and the rest of the market.
According to the report:

“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".

Ther article goes on to say: “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".

The idea isn't as strange as it might sound. Last month Google and Lexar joined forces to bundle Google applications like Picasa, Google Toolbar and Google Desktop Search applications on its line of USB flash drives.

The offering is the first time consumers will be able to install Google applications from a USB flash drive directly to their desktop to edit photos, find files and search the web using the Google applications without the need for an internet connection.

A PC-based device would most likely work in the same way, but on a bigger scale.

Pocket-lint will be attending the show from the 5-8 January 2006 with news updates from the show across the 4 days.