Under its model, Google could even afford to pay computer makers to install its software on their machines, essentially subsidizing their cost.
That connection lets the vendor employ the cell-phone model of offering the machine cheaply and subsidizing it with stiff monthly access fees.
In November, after the promised high-volume sales to governments failed to materialize, the organization began a $399 "Give 1, Get 1" promotion, in which people could buy XO machines and subsidize gifts to educational programs.
While there's been speculation that the machine could be subsidized by US carriers, it's going to take one hell of a two-year contract price to bring the bottom line down to an appealing level.
Last month, the company, based in Londonderry, N.H., began subsidizing "healthy vending machines" at three Rhode Island high schools, selling its own organic yogurt and other low-fat products.
Mr. Townsend is subsidizing costs at this point, but the machine does display the calendar of events at the Knitting Factory, he said.
The Google machine might even be subsidized like a cellphone, thrown on at a deep discount for a subscriber to Google Apps.
AG: Well, from the beginning of the computer age in America, the government was very heavily involved -- subsidizing the creation of the new software, the creation of the new machines.
Over the years, the tracks, which were there first, won permission from states to add slot machines and poker tables under the condition that a chunk of the profits go to the dog races — essentially subsidizing one form of gambling with another.
Stop subsidizing stupidity.
